Funding Your Small Business
When you’re looking to first purchase a business, you have several options for getting started financially. You’ll want to make sure you’ve explored all of your options so that you give your business the best chance at being successful in the long term. Getting started financially can seem overwhelming but we’ve gathered some tools to help you get started. Financing is such a crucial first step because how you fund your business can dictate how you run your business!
To get started with financing your small business, consider the following steps:
- Determine how much funding you’ll need
- Each small business has unique needs and not every financial plan will be suited for everyone and for every small business situation. Depending on your financial situation and business concept, getting started with funding will easily contribute to the financial success of your business. So, once you have a better idea of what you’ll need to get started, then it’ll be easier to figure out how to get it.
- Fund your business with self-funding
- You can always start with yourself and any self-funding available, if you have this option. Then, you’ll be more likely and able to retain control over every business decision made about your business because you are the sole financier and business owner.
- Get capital from investors
- If self-funding isn’t a likely or consistent source for your business, you can also look into venture capital. It usually involves giving up a little bit of your ownership and decision-making power, but it will help you get the financial footing you need to get started if self-funding isn’t a viable option for you..
- Use crowdfunding to fund your business
- Crowdfunding is another way to get your business up and running financially. Different from venture capital investors, crowdfunders usually receive gifts from your business in return for financial support. The gift can be a product you plan to sell or other promotional perks that the crowdfunder benefits from, making this kind of funding extremely popular with small business owners because the stakes are often lower and more accessible.
- Get a small business loan
- You can also simply take out a SBA loan to get started. While loans are meant to be paid back, they exist to help you get started if self-funding and crowdsourcing doesn’t work best given your situation. You’ll gather your bank statements and proposed budget to submit to banks offering SBA loans and see what you qualify for. You’ll want to make a good argument for why you and your business are a good fit for the loan.
- Look into SBA investment programs
- Several SBA investment programs also exist to use as resources to get your small business started. SBICs are privately owned and use their own capital, plus funds borrowed with an SBA guarantee to create investments in qualifying small businesses.
If you’re ready to start planning your small business’ financial future, please contact our team at The Liberty Group by visiting our financing options on our website: https://www.thelibertygroupofnevada.com/buyers/financing-options/