If you are considering starting up your own business or if you have already created your business plan and are already moving forward, your most important task is to obtain funding for your business. This can be the most stressful part of starting a new business and you don’t want to risk your own personal investments to get your business started, which usually isn’t enough to start a business anyway.
A great resource to go to find funding is your local chapter of the Small Business Administration (SBA). The SBA is successful in helping businesses obtain the financial help they need to launch a business and keep it maintained. The SBA will help you research financial assistance such as grants, small business loans, SBA loans, surety bonds and other loan options. SBA loans usually offer longer terms and might even have lower down payments.
Another way to get starting funds and to avoid high-interest loans is to get venture capitalists to invest in your business. These venture capitalists will get a small percentage (stock) of your business. Fine-tune your business plan and create a presentation to potential investors to let them know why they should be investing in your business. Online you can find a number of angel investor networks where you can find an investor for your business.
You can also check your eligibility for government grants to help finance your new business. There are thousands of government grants available to all sorts of businesses. Research different grants available and find the ones that give grants to businesses like yours. Many grants go to nonprofits and research oriented businesses. Put in the time apply for grants before trying to get any other sort of funding. The best thing about grants is that you don’t have to pay them back.
Be creative when it comes to finding funding for your business. Apply for all government grants that have anything at all to do with your business. You can apply for grants and loans at the same time. SBA loans are probably your best option. There are also a number of small business loans available, so compare loans and see which ones work best for you. Also, do not be afraid to seek help from someone who has been through the process before. Ask them to be a mentor to you and give you guidance in your funding decisions.