I have a question: I don’t have a lot of money to start my business. Which is better, raising equity (selling stock) or getting a bank / SBA loan?

Nighttrain,

It depends on your situation and the type of business. Generally there is a trade off: with equity you have a “forever” partner that gets part of your earnings as long as you own the business (or buy them out). But the risk of failure is on them, if you fail you don’t have to pay the money back. With a loan you have to pay it back no matter what (normally you will have to guarantee a loan), but then you are free and clear.

There is a long, more explained description in our free book, download it and take a look: https://galaxyofstars.org/free-copy-of-start-up-book/

Good Luck! And let us know if you have any more questions.

HS1, Hidden Star expert

thanks. I downloaded the book and am reading it now.