Acquiring Start Up Money

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Acquiring Start Up Money

• Agribusiness

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• LIFE IS SWEET
• THE STORY OF MILTON HERSHEY
• Born in September 1857, in the heart of
  Pennsylvania Dutch country, Milton Hershey began
  life
• thinking about candy. His first job was an
  apprenticeship to the local printer who shortly
  dismissed
• him. His mother suggested that candy was the
  trade for Milton, and sent him to learn about the
  
• confectionery business. Later, Milton moved to
  Philadelphia where he founded his first candy
  shop.
• Yet with all his hard work the business failed.
• Milton moved to Denver. He found work with a
  candy manufacturer. He learned about fine
• quality caramels made with fresh milk. Fresh
  milk, Milton learned, allowed the candies to stay
  sweet
• and fresh.
• After borrowing money from his mothers family,
  Milton moved on to New York City to open a
• new candy shop. Again the business failed. This
  time his creditors also lost money. Milton vowed
• he would pay his remaining debt.
• One more time Milton opened a confectionery
  business. This time he made fine caramels. By
• focusing on a specialty item, Miltons business
  quickly grew. He paid back his creditors, and
  later
• sold the business for one million dollars.
• Milton Hershey still dreamed of making
  chocolate. In 1894, he started the Hershey
  Chocolate
• Company in Lancaster, Pennsylvania, as a
  subsidiary of the Lancaster Caramel Company.
  Later,

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Milton Hershey
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What is Seed Money (start-up money)?

• Seed money is typically used to pay for such
  preliminary operations as market research and
  product development.
• Investors are often the business founders
  themselves, using savings, mortgage money, or
  funds borrowed from family and friends. They may
  also be outside angel investors, venture
  capitalists or accredited investors who are
  acquainted in some way with the founders.
• Seed capital is not necessarily a large amount of
  money. Many people start up new business ventures
  with 10,000 or less.

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What is Venture Capital?

• Seed money can be distinguished from venture
  capital in that venture capital investment tends
  to involve significantly more money, an arm's
  length transaction, and much greater complexity
  in the contracts and corporate structure that
  accompany the investment.

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Sources of Start-up Money

• Your own pockets
• Family and Friends
• A line of credit through a local bank/banker.
• A start-up business loan from a bank.
• A start up business loan from a business-related
  or government sponsored organization.