How to Get Funding for Your Business

How to Get Funding for Your Business

How to Get Funding for Your Business

A Business is an economic activities carried out to make a profit. Profit is a technical term for gain on business transactions. Business can be in form of sales of goods or provision of service, while business can take place either online or offline. One thing is certain in any type of business you opt for. Either you need money to purchase goods, money to pay employees, money to buy data, or money to send up office. Funding can also be in form of startup costs for the purchase of assets/equipment or working capital for day-to-day operations. Funding is no doubt one of the differences between a big business and a small business. Big businesses have access to big funding for expansion and hiring a competent workforce, while small businesses do not.

Choice of funding majorly depends on the type of business you want to do and its capital requirement. It is assumed that you’ve done your business research and your business plan already states the funding required for your business, both startup fund and working capital.

Type of Funding Business can ……

  1.       Personal Savings
  2.       Borrowing from friends and Family
  3.       Loans from Commercial Banks
  4.       Bank of Industry
  5.       Grans
  6.       Venture Capital
  7.       Angel Investment

Preparing your Business for External Funding

  1.       Get Business Plan
  2.       Get  a Financial Consultant
  3.       Be Discipline and ensure your Business funds is different from your personal fund

Option1: If You’re Starting up a Small Business

Look Local

If you’re launching a small company (vs. a tech start-up that you see as the next Facebook), you’ll definitely want to check out your local small business development center. Many universities have one, and the Small Business Administration (SBA) alone has 63 across the country. Not only can these centers help connect you with groups of entrepreneurs for networking and angel investors for funding, but they can also help you determine what type of loans and funding you might qualify for and help you apply. Your local chamber of commerce may also be a treasure trove of information and guidance in terms of where to get local funding. Many large cities have programs and organizations that exist solely to bring business into the local community.

Consider Taking Out Loans

If you can show that you’ve started gaining traction and making money (and that a loan would help you earn even more), you may be able to qualify for a traditional bank loan. Many banks, such as Bank of America and Wells Fargo, have recently announced an increased commitment to small businesses. While each bank and individual situation differs, this may be a good bet if you’re looking to find funding between $5,000 and $500,000.

Good luck to you all!

Be the first to comment

Leave a Reply

Your email address will not be published.