Are you into a small business or venturing into one? Well, if you are, then seeking funds is one of the options available to get the required investment in place. Though any entrepreneur who is just beginning his business has ample of ideas to fund it;it is always a good idea to get some expert advice or look for options other than the one you have.
Though there are many houses in the market which offer business loans, however, convincing one to be interested in investment purpose can be challenging. While it can be a good idea to speak to several people telling them about your business plan, here are some tips which can help you to go and get a good investor:
Finding Funds For Your Small Business:
- Get a Grant: If you are a woman, then this can be comparatively easy for you. Grants are something wherein money is given free of cost. Federal Grants are offered on the basis of two main factors – business type and the demography/location. For these minority business owners, women and single mothers are given preference over others (as per the guidelines of government). However, if you are looking for a grant, ensure that your business plans are well laid, the blueprint is easy enough for the guarantor to understand and that a full–proof plan always backs it. The Agencies which offer Grants include names like SBIR, STTR, and SBIC.
- Micro-financing:Micro-financing is suitable for small business which requires funds up to $10,000. This kind of loan considers factors like your experience, the market opportunity for your business and your capacity to repay. Some names which are famous for micro-financing include Accion USA, German Bank, and KIVA.
- Barter: This method too is used to get funds for your new/small business. Bartering is useful if you have a small business. It runs on the policy of – move unused inventory and get new customers for it. This way you can get business as well as money without asking someone. This can also be done directly with another company or through a barter exchange.
- Apply for a Loan: Incase your business is more than ayear old, then, applying for a business loan is a good idea. You can begin with something like a Low Start Loan. Low Start loans are easy to get as they majorly focus on managing cash flow. If you know this, then you are almost done. It’s a suitable loan as in this for the first 3 months you only need to pay the interest. It is from the fourthmonth that you need to repay both – the principal and the interest till the time loan gets finished.
- Funding Companies: These days many startup businessesopt for cash loans from companies that offer business loans. Theyare preferred over banks whose terms and conditions are too technical and take much time for processing. So, if you haven’t tried a business loan company, you can always give it a try!
All of these ideas make for the best method of getting funds for your business setup. Test and tap on each alternative and then choose the one that best suits your business requirement. All of these have been tried for years and will definitely be fruitful. The only thing you need to do is – choose!