Help With Business Startup Costs
If you’re saying to yourself, I need help funding my business, you should know that you have many options to consider. Some of them are actually pretty easy to do, while others will require some additional work on your end. In this article, you'll find some of the options you have to get your venture off the ground and turn a profit.
If you need help funding your business, you may need to go on the search for some good investors. Keep in mind that some investors will be silent partners, allowing you to do your own thing, while others will want to be more involved. This is important to realize, since you will be working with many different people, often with varying degrees of expertise in the field you are looking to enter. In order to make sure people want to invest in your business, whether it’s online or not, there are some things you will need to persuade them to invest with you and provide funding.
Presentations: Don’t skimp here. You should put together a great presentation, complete with research and relevant data and statistics, even if you’re just asking people you know very well, like family, to invest. It will only help to make you look more professional.
Potential Returns: Highlight multiple levels of return to investors. It’s not wise to try to pull the wool over people’s eyes with pie-in-the-sky numbers. Since your investors are likely to be well established financially, they’ve probably heard those lines before.
One-on-One or Groups: You can put your presentation to work in a one-on-one setting or a group setting. Either way, be sure you represent yourself professionally for best results. This is good to consider when you need help funding your business.
Finding Qualified Partners
This is harder than it sounds. I have an online business partner and we tend to get along very well. We are hundreds of miles apart, so meeting face-to-face is almost impossible. That said, we have a great working relationship. We both bring totally different things to the table. For the most part, this is the best arrangement you can have. Since both of us realize our strengths and shortcomings, we trust each other to do what’s best for the business.
Finding partners is a bit of a challenge if you don’t know anyone willing or able to tackle the business venture with you that you need help funding. Try networking, both online and offline, do internet searches, put ads in papers, and just about anything else you can think of to find people that share your interest and passion.
It’s not nearly as easy to find government grants as many people think. There are tons of websites that claim to offer free investment money for inventions, business ownership, and other areas, but few are really tied to the government in any way, shape, or form.
Local: This is generally your best bet. Work with your city council or county board to find out what types of programs are available in your area. You just may find some assistance and help funding your business. Keeping it local makes it possible to reduce the scam attempts you will most likely face.
Federal: It’s hard to find federal government business grants. There are some out there, but you really need to use extreme caution when you apply for them. Single parents, both mothers and fathers, low income families, minorities, and females can have a good chance of qualifying for some type of assistance in funding a business. For the most part, government grants can help you get a business off the ground.
City Enhancement Programs: This is really where it’s at today. Many cities have started special programs to encourage businesses to come to their areas and to encourage people to open up small businesses in general. This gives you a great chance to get help funding some of your startup costs. Some programs are for very low interest loans, some are for free rent in certain districts, and others are for small upfront payments to offset the start up costs.
Financing Loans Today
There are government loan programs to help with financing your business. They are not always easy to qualify for. In fact, some are told no simply because the lender doesn’t feel the market will support the type of business being looked at. If you have decent credit, there are many benefits to using government financing for businesses. Here are just a few of the main benefits that can help you get yours off the ground.
Favorable Interest Rates: You can often take out a loan to start a business and get really good rates if you qualify for the government financing programs. You will find the rates to be sub-prime, so you won’t end up paying too much for the money you have to borrow to get started.
Good Repayment Plans: You can often get favorable repayment plans on your small business loans that need financing. You’ll find this helps you get started, since it takes a while for most ventures to take off.
Expertise: If the lender tells you the potential venture is too much of a risk, there’s a good chance it is. That said, it’s really up to you if you want to continue to pursue the venture. You’ll get some good advice for the most part that you can follow.
If you simply cannot get government help financing your business, and you cannot find investors or don’t want partners, you still have a few options to keep in mind. Listed below are just a few.
Start Small: Start from the ground up and slowly build your clientele. This is not the best option in the eyes of many, but it may be the only one you have. Keep it in mind. Some of the most successful businessmen and businesswomen started out this way.
Work Two Jobs: How else are you going to raise the money you need to get started? Short term sacrifice and long term gain. It’s a good option to keep in mind, but doesn’t offer the instant gratification so many of us want.
Selling Assets: It can be scary to give up what you own, but if you are committed to your venture, it may be something to explore. You will have to decide how much risk you are willing to assume.
Hopefully you can use some of this information when you need help funding your business.