It doesn't matter how great your business
plan is. If you don't know how to finance a business, it won't get
funded. Period.
This step -- targeting the finance source
-- is most difficult part about getting financing. Once you've got
this nailed down, the rest seems to fall into place.
What makes this especially difficult is
that there are so many options. Your business may really only
qualify for one or two of those options. It is very important to
know which ones.
We'll be looking at how to finance a
business via:
Small Business
Administration.
This is one of the most popular means
of financing a business, especially a new business. The SBA has
multiple programs available -- everything from microloans to mentor-protege
programs for entering the big time.
Angel
Investor Networks
Angel groups are just that:
business angels. The money and expertise they bring to emerging
businesses is absolutely life-saving. I can't imagine a thriving
business economy without our angel investors.
Venture
Capital Financing
From small boutique venture capital
firms, to huge international conglomerates, there is hardly an industry
in existence that the venture capital world has not influenced.
Cash Advance
for Small Business
Business Cash
Advances are similar to unsecured small business loans, but if you have
ever tried to get a
small business loan with bad credit
you know it's next to
impossible. This may be the solution you are looking for.
Bootstrapping
Bootstrapping is way back in vogue,
although in truth it never went out of vogue. The proverbial garage may
be a bit overrated, but the techniques of successful bootstrappers are
very real.
Small
Business IPO
A full fledge public offering is
outside of our area of expertise, but the small business IPO may be
right on target for many small companies.
Business
Grants
Unique businesses qualify for business
grants from a myriad of sources, both government and private.
Alternative Financing
When none of the traditional sources
seems right, step into the world of alternative financing, where
anything goes.
Investors for Small Business
Jog your memory with all the different
types and styles of investment. There should be one or two or
three that strike your fancy.
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Be sure to check out the Articles on
Business Finance -- there are some more gems there.
Few companies are financed entirely by
one means. Typically, it's a conglomeration of funding
sources. Perhaps a company starts out bootstrapping, but soon
applies for an SBA loan, or looks for angel investors.
Look to every avenue that may provide
capital when you look to how to finance a business. Sadly, it's not
always obvious. Sometimes even suppliers may be able to help out by
granting extended terms. Or a landlord can lower rent in the first
few months in exchange for a bit higher rent later.
Good luck in your search.
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