Need Startup Money for Your Healing Practice? Part 1
As an energy healing coach focused on energy healers starting up their healing practice, I frequently get asked: Where do I get money to startup my practice?
The first thing I tell them is that not all startup money is the same.
That’s right. Not all startup money is the same.
There are two types of start-up financing: debt and equity. You need to know the difference so you can decide which is best for you.
Debt financing is the use of borrowed money to finance your healing practice. Any money you borrow is considered debt financing.
Sources of debt financing loans are many and varied. The most common are:
- Savings and loans
- Credit unions
- Commercial finance companies
- In the U.S., the Small Business Administration (SBA). Additionally, loans from family and friends are also considered debt financing, even when there is no interest attached.
Two things to know about debt financing:
- Debt financing loans are relatively small and short in duration.
- They are awarded based on your guarantee of repayment founded on your personal assets and equity. Debt financing is often the financial strategy of choice for energy healers in the startup stage of their healing practice, when they’re trying to get up and going.
- Equity financing.
Equity financing is any form of financing that is based on the equity of your healing practice.
In this type of financing, the financial institution provides money in return for a share of your practice’s profits. This essentially means that you will be selling a portion of your healing practice in order to receive funds.
The most common sources of equity financing loans are:
- Venture capitalist firms
- Business angels
- Other professional equity funding firms
Two things to know about equity financing:
- Equity financing is usually a larger, longer-term investment than debt financing.
- Often involves stock options. Because of this, equity financing is more often considered in the growth stage of your healing practice (when you’re ready to expand), rather than when you’re just starting up.
Now that you know the difference between the two, which do you think is best for you? Are you clearly at the beginning of your startup or are you further ahead, ready to expand and grow?
In my next post, we’ll take a look at the main sources of funding for energy healers making the transition from working on family and friends to starting up energy healing practices.
The Yes You Can! Get Your Vision Aligned in 10 Days eBook empowers energy healers to put themselves forward in their communities and start up heir healing practice. For in doing so, not only will more people find the healing they need, our communities and our relationship with the natural world will also be healed.
Please join me at FB/groups/Energy Healers Thriving Businesses to receive your copy of Yes You Can! Once you’ve joined the group, you can download the PDF from the Files section.