Ways to Obtain Small Business Funding – Resources and Methods
If you have a great business idea, but you lack the financial means to start an enterprise or to expand your existing business, you must know that there are many great small business funding opportunities that can help you. The most common form of business funding is a bank loan, but many start-ups and small businesses are turned down by lenders because they cannot provide a sufficiently long or solid credit score – if this is your case, too, don’t be put down by the rejection, there are many other ways you can find financial aid, here are some sources.
Government Funding for Small Business Development
Federal agencies and other government sources provide funding mostly for non-profit organizations and, to a limited extent, for for-profit businesses active in specific industries or niches such medical research, environmental research or the energy industry. You can find opportunities for government funding for small business on the websites of the Small Business Administration or the sites of the Small Business Technology Transfers or the Small Business Innovation Research programs.
Other Sources for Small Business Funding
The SBA website is an excellent starting point to find funding other than from government sources. It will help you find sources for small business funding not only by informing you about grant opportunities – it also has specific sections that offer guidance on how to write a business development plan and it also provides information about other financing options such as loans provided by lenders to meet the specific features and needs of start-up companies and small businesses.
Equity Financing and Self-Funding – Two Other Ways to Obtain Funding for Your Small Business
Equity financing is the term used to refer to the process of turning over a part of the company ownership to an investor. There are venture capital investors who put their money only in start-ups and small companies, while others prefer investing into companies that are already growing. To find the investors, you can consult the SBA website – the site provides valuable information about Small Business Investment Corporations, private investors regulated and licensed by the agency – or you can carry out a general online research for investors interested in the type of enterprise that you have or in financing your business idea. If you choose this solution, be prepared that your investor or investors will want to take an active part in the management of your business, so you will not be the sole decision maker in your firm.
Crowdfunding – A Great Modern Way to Get Financial Aid for Your Small Business
Crowdfunding leverages the potential of the internet and it helps you reach out to thousands of people who may beinterested in your business ideas, being an excellent tool not only if you need funds, but also if you want to obtain proof that your business idea is indeed lucrative or if you need an efficient marketing channel. When used for small business funding purposes, crowdfunding allows you to present you project or business idea through dedicated online platforms and it also helps you to avoid the risks you are faced with in the first phase of establishing a business.