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When I was a boy, my
mother used to say to me, 'Never point your finger at anyone because
when you do, three finger are pointing back at you.'
DR. JOHN SENTAMU,
Archbishop of York |
Funding your
business venture used to be an easy task. You simply pulled out your
financials and sat down with your banker.
The most challenging part is that few companies
are financed entirely by one means. Typically, it is a conglomeration of funding
sources. Perhaps a company starts out bootstrapping, but soon
applies for an SBA loan, or looks for angel investors, or leases
equipment.
More often than not, businesses do not know what
it is that they need, and so they don't get it. Sure you need money.
Every company could use some more money. But why do you need it?
Seriously, why do you need the money?
Do you need to hire a marketing guru?
Do you need to beef up your inventory?
You need business start up advice from a number of
specialists?
Do you need to pay off bills?
It makes a huge difference.
Let's look at that first one: the marketing
guru. There are lots of really smart marketing people out there, and they
don't all cost an arm and a leg. Get in touch with your
Bootstrapping
Group (you do belong to one, don't you?) and see who other companies have
used. You will be amazed at what you can find.
Need inventory? Sure, the easiest way is to
buy it. But demonstrate your real entrepreneurial spirit and negotiate
longer terms for that product. If you are in good standing with your
supplier, odds are pretty good you will get those longer terms. Change
suppliers if need be. There is a lot of extra product sitting in
warehouses.
How about all that advice and support you need as
a small business? Look for a small business incubator. That
physical setup is designed just for you. A number of small businesses come
together, sharing space and knowledge, often with the backing of the SBA or
local Chamber. The success rate in incubators is outstanding, so that will
smooth the way for all other types of financing you may need as well.
You need to pay off bills? Well, you better
have a really good plan in place for paying back any loan you are asking for.
Once you become a bad credit risk, it is really, really hard to get financing
anywhere.
The object is NOT to get money. The object
is to accomplish your goal, whatever that may be. The more ingenuity you
can demonstrate at this level of your business, the easier it will be to raise
traditional funding later on.
Jog your memory with all the
different
types and styles of funding your business venture. There should be one or two or
three that strike your fancy. How about
There are lots of ways to fund a
business. The trick is to find the one that works for your business
at this point in time.
Solve part of your problem with one
solution; solve another part of your problem with another solution.
Be sure to check out the Articles on
Business Finance -- there are some more gems there.
I am writing this as the economy is
slipping into a recession. Believe it or not, this is an excellent
time to look for business funding. Any company that can demonstrate
how it is going to weather the financial storms ahead is just so far ahead
of the pack. Put your company out there. Start planning now.
Funding your business venture will be a lot easier than you had imagined.
Good luck in your search.
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