Obtaining Funding For Your Small Business

As a consultant, I speak with several people seeking to start or grow their business and one question I ask is “How much money do you have set aside for starting and growing your business?” and lately the response has been, “I don’t have ANY money PLUS I have BAD credit.”  Now this is a common scenario and there have been ways that people have worked through these obstacles.  All one need are education and guidance and they will be able to see their business idea manifest.

Whether starting a new business or growing your existing one, managing your finances effectively is a critical part of operations.  Instead of risking business assets or your own personal funds to keep your business running you can obtain funding from several local and national resources.

Here are a few options for you in securing funding for your business:

1. Small Business Administration
One of the best ways to find funding for your small business is to consult with your local chapter of the Small Business Administration.  You can log onto this website- http://sba.gov/services/index/html for more information.  This website will lead to a wealth of resources for financial assistance such as:
-Small Business Loans
-SBA Loans
-Surety Bonds
-Equity Capital Information
-Special Purpose Loans
-7(a) Loan programs

2. The SCORE and Small Business Development Centers in your community are other valuable resources to obtain funding and work with potential investors and loan providers.  Check your local listings for these resources and make an appointment for visit.

3.Venture Capitalists
With this approach, you’ll need to fine-tune your business plan and and work with mentors andadvisors to tap into the right resources.  There are many resources on the web where you can find venture capitalists, but majority of that work will come through reliable referral resources.  With this approach you will incur a few costs and you will need to consider these as an operational cost as you proceed to build your business with expenses falling under the categories of:
a. Marketing and Brand building
b. Labor Costs (wages and salaries of current employees)
c. Creating the Business Plan
d. Professional fees and costs (e.g. Consultants, Lawyers, Accountants)

4. Angel Investors Networks Online
There are many online to search from but you can start with Garage.con and vCapital to locate investors in your area.

5. Term Loans
These loans are typically used for working capital and other secure assets to start or run your business.  These are provided by your local banking institutions thus requiring strong credit history and some collateral.

6. Investment Clubs
There are several investment clubs that with low membership costs they will support and guide you in obtainig money for your start-up capital.  These can be located on the internet but honestly these groups are for inner-circles and sometimes membership to these groups are invitation only.

Typical guidelines to obtaining any kind of funding is a credit score of 640, 3 years of financial statements and tax returns for existing businesses, and a sound business plan.

Learn more with your small business guardian angels at http://www.TheHudsonCorp.com  for assistance in starting or growing your small business.   We explain principles and processes for your success despite whatever business you are in!

Wealth & Success.