How to Get Business Funding
When a business owner starts up, they often need capital to help them through the initial stages. This includes helping with operational costs, weathering the storm through low sales or expanding to achieve growth goals.
Small businesses can get financing through equity funding, debt capital, or retained earnings. Retained earnings is cash that remains in the company after it produces goods or services. Debt capital comes from loans from banks or public offerings of securities (equity funding).
There are many ways to finance your small business and the best option for you depends on your unique financial situation and your vision for your business. Regardless of the method, you will need to create a solid business plan and be prepared to explain your company’s financial track record.
A solid business plan will outline the company’s plans for using the funds and how it will pay them back. This will help creditors and investors assess the risk of the project.
Family and friends, credit cards, and business grants are all other sources of funding. Each of these options is a good source for different types of small business needs.
If you aren’t sure where to start, it may be helpful to consult a SCORE, Small Business Development Center, Women’s Business Center or Veterans Business Outreach Center advisor. They can offer free guidance and counseling to help you navigate the funding process.
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