10 Ways To Fund Your Business
10 Ways To Fund Your Business
2. Friends or relatives often have money to invest. The loan can be structured so that there is a benefit for everyone involved.
3. Line of credit - If you have an asset that is valuable a bank will establish a line of credit for you. People use their homes as the asset or if you are already in business your business could be that asset. With a line of credit you might have access to $100,000 but you pay interest only on the amount you actually use.
4. Personal loan - A bank gives this type of loan based on your borrowing history and credit you have established with them or based on an asset you own. With a line of credit you only use what you need and pay interest on that. With a personal loan you get the full amount and pay back both the interest and principal over time. Whenever the loan is secured by your home, proceed cautiously. It is possible to lose both your home and your business if you fail to make your payments.
5. Credit Card - In today’s market many credit card companies are offering 0% financing. If you know you can pay back the money relatively quickly, this is free way to borrow. This method should be used cautiously. Interest rates can go up.
6. SBA loan (US only)/Commercial loan - The SBA doesn’t actually loan money but they will guarantee your commercial loan for the bank. To apply for this type of loan the bank will want to see a business plan along with some financial information about you.
7. Grants - NIH (in US) gives grants for Small Business Innovation Research (SBIR) and there are also grants called Small Business Technology Transfer (STTR). To learn more about this go to: http://grants1.nih.gov/grants/funding/sbirsttr_programs.htm. There may be other grants in your specific industry. One place to do research on grants is through the appropriate industry association connected to your business.
8. Micro loans - These are loans from nonprofits or government agencies that focus on economically deprived communities and minority groups. These are usually loans for small amounts of capital for example under $25K. Organizations like Working Capital and Small Business Development Corporations in various communities offer these kinds of loans.
9. Angel investors - These are investors who provide money to start up business. They take a greater risk than a bank and will want to make more money because of that.
10. Venture Capitalist - These are groups that have funds available who are willing to take a big risk (often on new technology) and expect a high return. This is usually a source for an existing business rather than a new one. VCs invest large amounts of money in the business and therefore own a large part of the business. Their goal is to sell the business in a relatively short time. One way they sell the business is by taking the company public through an IPO (Initial Public Offering).
10 Ways To Fund Your Business - To learn more about this author, visit Alvah Parker's Website.
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1. Self-funding - You provide the capital necessary to start your business with your own savings and assets.
2. Friends or relatives often have money to invest. The loan can be structured so that there is a benefit for everyone involved.
3. Line of credit - If you have an asset that is valuable a bank will establish a line of credit for you. People use their homes as the asset or if you are already in business your business could be that asset. With a line of credit you might have access to $100,000 but you pay interest only on the amount you actually use.
4. Personal loan - A bank gives this type of loan based on your borrowing history and credit you have established with them or based on an asset you own. With a line of credit you only use what you need and pay interest on that. With a personal loan you get the full amount and pay back both the interest and principal over time. Whenever the loan is secured by your home, proceed cautiously. It is possible to lose both your home and your business if you fail to make your payments.
5. Credit Card - In today’s market many credit card companies are offering 0% financing. If you know you can pay back the money relatively quickly, this is free way to borrow. This method should be used cautiously. Interest rates can go up.
6. SBA loan (US only)/Commercial loan - The SBA doesn’t actually loan money but they will guarantee your commercial loan for the bank. To apply for this type of loan the bank will want to see a business plan along with some financial information about you.
7. Grants - NIH (in US) gives grants for Small Business Innovation Research (SBIR) and there are also grants called Small Business Technology Transfer (STTR). To learn more about this go to: http://grants1.nih.gov/grants/funding/sbirsttr_programs.htm. There may be other grants in your specific industry. One place to do research on grants is through the appropriate industry association connected to your business.
8. Micro loans - These are loans from nonprofits or government agencies that focus on economically deprived communities and minority groups. These are usually loans for small amounts of capital for example under $25K. Organizations like Working Capital and Small Business Development Corporations in various communities offer these kinds of loans.
9. Angel investors - These are investors who provide money to start up business. They take a greater risk than a bank and will want to make more money because of that.
10. Venture Capitalist - These are groups that have funds available who are willing to take a big risk (often on new technology) and expect a high return. This is usually a source for an existing business rather than a new one. VCs invest large amounts of money in the business and therefore own a large part of the business. Their goal is to sell the business in a relatively short time. One way they sell the business is by taking the company public through an IPO (Initial Public Offering).
10 Ways To Fund Your Business - To learn more about this author, visit Alvah Parker's Website.
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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