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Seed money is money that is used for the opening for a new business to pay for such preliminary stages as market research and product development. Potential business owners may use savings, remortgage, or raise funds from family and friends. A more business oriented option is to seek out angel investors, venture capitalists or accredited investors who may have an interest in the business and would be willing to invest in it. Seed capital does not need to be a large amount of money. Many people start up new business ventures with $10,000 or less. Seed money is not venture capital.

Seed money can can also come from financial bootstrapping. Bootstrapping in this context means making use of the cash flow of an existing enterprise. If an entrepreneur focuses on selling products and ensuring early payment, this is the most obvious way of generating seed money. However, as well as raising the bridge, an entrepreneur can lower the water. Other means of garnering or conserving seed money include purchasing second-hand equipment rather than new or leasing rather than buying; paying sales people or agents on commission rather than having people on the payroll.

Frequently an aspiring entrepreneur may think that he or she must spend all their early energy on raising finance, but often too much money is more disabling than too little. If cash is tight, the startup will be concentrated on essentials. Even after revenue is being earned, cash flow management will be the most significant determinant of early survival.

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-'''Seed money''' is [[money]] that is used for the opening for a new business to pay for such preliminary stages as market research and product development. The first place where you can look for seed capital to start your own business is in your savings account. You might also consider asking friends and relatives for seed money. Another option is to seek out [[angel investor]]s, [[venture capitalist]]s or [[accredited investor]]s who may have an interest in your business and would be willing to invest in it. Seed capital does not need to be a gross amount of money. Many people start up new business ventures with $10,000 or less. Seed money is not [[venture capital]].
+'''Seed money''' is [[money]] that is used for the opening for a new business to pay for such preliminary stages as [[market research]] and product development. Potential business owners may use savings, remortgage, or raise funds from family and friends. A more business oriented option is to seek out [[angel investor]]s, [[venture capitalist]]s or [[accredited investor]]s who may have an interest in the business and would be willing to invest in it. Seed capital does not need to be a large amount of money. Many people start up new business ventures with $10,000 or less. Seed money is not [[venture capital]].
-Seed money can can also come from ''financial bootstrapping''. Bootstrapping in this context means making use of the cash flow of your own enterprise. If an entrepreneur focuses on selling his products and ensuring early payment, this is the most obvious way of generating seed money. This might otherwise be called 'customer financing'. One a customer is gained, then there are many other ways of ensuring a positive cash flow. Examples are invoicing on time, or ensuring that the price has a good gross margin. equally payment or part-payment can be sought 'up-front', or using electronic payment will speed up the cash. However, as well as raising the bridge, an entrepreneur can lower the water. Other means of garnering or conserving seed money include purchasing second-hand equipment rather than new or leasing rather than buying; paying sales people or agents on commission rather than having people on the payroll.
+Seed money can can also come from ''financial bootstrapping''. Bootstrapping in this context means making use of the [[cash flow]] of an existing enterprise. If an entrepreneur focuses on selling products and ensuring early payment, this is the most obvious way of generating seed money. However, as well as raising the bridge, an entrepreneur can lower the water. Other means of garnering or conserving seed money include purchasing second-hand equipment rather than new or [[leasing]] rather than buying; paying sales people or agents on commission rather than having people on the payroll.
-A successful startup will depend upon other features much more than finance. The only exception will be a highly capital-intensive venture or a high-tech business that has a high threshold entry price, for example a pharmaceutical business that has to meet certain requirements in order to obtain FDA approval. Frequently an aspiring entrepreneur may think that he or she must spend all their early energy on raising finance, but often too much money is more disabling than too little. If cash is tight, the startup will be concentrated on essentials. There is no business without sales. Even after revenue is being earned, cash flow management will be the most significant determinant of early survival.
+Frequently an aspiring entrepreneur may think that he or she must spend all their early energy on raising finance, but often too much money is more disabling than too little. If cash is tight, the startup will be concentrated on essentials.  Even after revenue is being earned, cash flow management will be the most significant determinant of early survival.
 ==See also==