Small businesses are as numerous as they are varied. Small businesses grow to become medium sized businesses. Both are the backbone of an economy. Without them, there would not exist companies such as Apple, Microsoft or Tesla. These are just a few examples of companies which started either in a garage or from someone’s garden shed and have gone on to become some of the world’s largest earning companies on planet Earth.
If you plan to start a small business – or have done so already – you’ll probably appreciate money is tight and it would be great to be in the shoes of Bill Gates and his entrepreneurial colleagues. They probably had the same thoughts as you are having at some point in their early careers.
However, if you work hard and concentrate your energies on achieving success, there is no reason your fledgling business cannot grow to become a household brand name. So, without further ado, let’s look at some of the ways in which you can source funding for your business without selling your soul to the Devil.
Tailored business funding
If you have capital to put in to your new business, use as much of your own money as possible. However, if that capital is used up by equipment purchase, do not go down the route of borrowing from the bank by way of overdraft. Overdrafts are notoriously expensive and it is not unknown for lenders to recall overdrafts without notice, meaning you will have to settle the now withdrawn overdraft facility, which can crush a business at a stroke.
If you can show your written business plan and evidence of self funding, it is far simpler and makes more business sense to apply for tailored business loans from Become or similar. There are many sources for funding opportunities in the US. Unlocking those sources can be erroneously difficult if not impossible for a business owner on their own.
Lenders are always looking for opportunities to lend and earn interest on loan amount. Business owners at some point will need funding sources – often, the two never meet for one reason or another. Using an intermediary platform, the two can be connected in a way which is beneficial to both parties.
State and federal business grants
Some 82% of business start ups fail, and the biggest single reason is lack of sufficient funding available, especially if the business experiences a lean time. Depending on the business type and sector in which to operates, there may be grants available at state or federal level. As an example, The Small Business Administration works closely with different organizations to provide help with start ups.
Different grants and amounts will often be criteria led. Grants may be for the purchase of machinery, lease of suitable premises and other essential business start up costs. Because they are grants, the money will not be required to be paid back. There will be lots of paperwork and hoops to jump through, but it will be worth the effort.
Grants typically range from a few hundred dollars to hundreds of thousands of dollars. The smaller value grants are typically available to start-ups, whereas the larger grants may only be available to established business looking to expand or relocate, with the promise of bringing employment to a local area. Research is required to find the best suited to your business profile.
Do not be put off starting a business. There are ways and means of funding without paying high interest or selling your sol to the Devil. Look at the options and weigh up which is best for you. After all, it is your future and one which you’ll want to do the best for.