Small Business Growth
-- Know Where Your Business Stands, and Where It Is Going
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Sticking to it is the
genius! Any other bright-minded fellow can accomplish just as much as I
did if he will stick like hell and remember nothing that's any good
works by itself. You got to make the damn thing work. I'll never give
up, for I may have a streak of luck before I die.
THOMAS EDISON,
Inventor |
Funding options are often
determined by small business growth status. Below are a few of the most popular funding sources,
including small business loans, SBA loans, bank loans, venture capital
investors and angel investors. Determining the best source for your
company isn't always easy. But you do need to gear your whole business
plan and presentation to the source that is most likely to fund your project.
So choose wisely, and be ready to change direction at any time.
Here's a quick summary of small business
growth funding that you may be looking at. There are, however, no hard
and fast rules. The best funding for your company is often the one that
you can get.
And here's a bit of explanation on the Small
Business Growth financing possibilities:
| |
Type
of Funding |
What it is |
|
Pre-Startup |
If you are not financing it
yourself, then angels are your best bet here.
|
You've got a great idea, but aren't
sure how to make it a reality. You probably don't have a
full fledged business plan at this point.
|
Start Up
|
Angels, bootstrapping and friends
are the best sources. This is a very diverse group. Aunt Hennie may
donate her empty garage for the business; a retired business
person may invest $100,000; a major customer may advance $500,000
against the first year's orders; the previous owner may take back
a $250,000 Note payable over 15 years. |
This is the money that gets your
company off the ground. The further you can get on your own,
the better off you will be in the long run. At this stage,
there is typically little or no "company" to speak of. You
may need to file corporate papers, locate your office, even
identify your first business. But, you should have your
business plan completed, and be ready for funding.
|
Ground Floor
Company
|
Your options start expanding here.
Consider:
* Leasing equipment,
* Negotiatilng a better lease;
* Line of credit;
* SBA loan;
* SBA Mentor-Protege Program
* Venture capital
|
1 - 3 years old. Your company
is probably still establishing its foothold in the industry. |
Established
Company
|
If you credit is good, lots of
options will be open for you. If your credit is not good,
very little will be available. |
3-5 years old. Established in
the industry. |
|
Company Buy
Out |
Creditors will want information both
on you, your previous company, and the history of the company you
are purchasing. Depending on what those things say, you may
have lots of options, or none. |
If this is already a strong company
financially, you should be in great shape. If it's not, life
will be tougher. You will have to prove how you can make it
into a financially strong company. |
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Business Growth
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