5 Ways to Find Funding for Small Businesses
Many business owners out there have fantastic ideas but they just can’t implement them because they don’t have the money. Yes, this happens every day and it’s a shame because many give up before they even start.
Funding can be hard and easy at the same time. If you have a brilliant idea and a credit history to back it up, you can get funding until your head explodes. On the other hand, if you don’t have a good idea and your credit is in the crapper, you may have to keep your day job.
Let’s remember that the hardest part of starting a business is taking action. If you don’t take action, nothing is going to happen. Yes, I know money doesn’t grow on trees, nor can you start up a business with $0, I understand that. These are some tips you can take today to get some funding for your future business.
#1 Start with grants – Look into your state’s requirements when it comes to applying for a small business grant. You don’t have to be poor, nor do you have to meet a ton of requirements. Yes, there are some requirements, but you’re going to find that it never hurts to apply for one. Check out Business.gov for more information in regards to finding one.
#2 The banks - This is an obvious one, I know, but what you’re going to find that its best to ask a business for a business loan. All of your corporate banks are going to have protocols, but what you’re going to find out is that if your credit is good enough and you meet the banks criteria, you should have a good chance at landing something.
#3 Try a small business credit card – A small business credit card isn’t going to have a ton of credit for you to dip into but its an option. While I wouldn’t recommend spending $1,000s on a project, it’s great for smaller purchases. Most of your business cards are going to have a higher interest rate, but it’s a decent option if you have no where else to turn to.
#4 Find an investor – There are plenty of investors out there looking to invest in anything. Where do you find them? Generally, the best way to find one is either via networking or through attorneys that deal in the “investing” based world. Be aware that if you do take this route that you’re going to need a nice plan to entice them to give you some cash.
#5 Turn to friends / family – This may be your last route, but it can work. Treat your friends and family like an investor. You need to tell them what is in it for them. Are you going to pay them back + 10% interest? Are you going to give them a portion of your profits? Let them know what you’re going to do so that they agree.
Yes, funding can be hard to get, but it will never come to your business if you don’t try. Be sure to try out a few of these tips to see how you can do with your upcoming funding ventures.
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