Tweet

What will happen to small business funding?

Written by: Carl Moore

Article Overview: Investors must change their mental views of “I don't feel like "spending money" because of the recession and lack of liquidity options. For startups it’s irrelevant, it’s a long road and management or lack of will be the determining factor.

What will happen to small business funding?

What will happen to small business funding?

Investors must change their mental views of “I don't feel like "spending money" because of the recession and lack of liquidity options. For startups it’s irrelevant, it’s a long road and management or lack of will be the determining factor.

Yes, people and companies are buying less, therefore startups will as a result take longer to reach next-level revenues required to attract next level funding. Fund managers are finding it harder to raise new funds because the portfolios of many limited partners, pension funds, foundations, etc. are down, so they are less likely to invest too.

The Government is pumping in a Trillion Dollars to buy small business commercial paper making sure there are sources of funding. Most startups will not make it through the 3rd year but those that do will be the catalysis for creating and sustaining jobs needed to turn around this economy.
What the Newby needs to do is continue to search for every available funding vehicle…before funding needed. Talk to friends and family, angels, and yes Venture Capitalists. Let everyone know what good things your company is doing and Advertize, Advertize, Advertize.

Bring in visitors that can give you advise and ideas of how to create the infrastructure needed to sustain company growth…swallow your pride and ask for help!

Related Articles
  Funding for Small Businesses
  Part 7: Funding Request
  Protecting Your Small Business in Today's Economy
  PRN Funding Introduces Real-Time Web Communication
  UK Business Finance - The Options Available To You

Article Tags: investors, small business funding



Related Forum Posts
Suggestion for an Entrepreneur Looking for Funding - I am new to this forum but have been actively assisting my husband with his cash flow business for a number of months. One issue that I have seen that often occurs from those looking for funding is the lack of paper work that is needed when a funding request is presented. It is so vitally important for an Entrepreneur to have their paper work up to date (business plans, executive summary) before they look for funding. In addition, it is so vitally important to keep in touch with the funding source to expediate their funding project.
Re: Suggestion for an Entrepreneur Looking for Funding - [quote="speechlady"]I am new to this forum but have been actively assisting my husband with his cash flow business for a number of months. One issue that I have seen that often occurs from those looking for funding is the lack of paper work that is needed when a funding request is presented. It is so vitally important for an Entrepreneur to have their paper work up to date (business plans, executive summary) before they look for funding. In addition, it is so vitally important to keep in touch with the funding source to expediate their funding project.[/quote] I agree with speechlady - and would like to add the following: It's important for you and your company to be "capital ready".
Re: How to Get Your Business Funded - [quote="intelemark":3hn9vdrv]small business - bank loan will work. [/quote:3hn9vdrv] The problem with this statement is that due to the stringent requirement criteria, the majority of entrepreneurs don't qualify for bank loans. SBA backed loans' basic requirements include: * 20% cash infusion by requestor * excellent credit score * industry experience * strong collateral If even one of those is missing from the equation you cannot even apply. For small startups you can also try peer to peer lending, but even they require strong credit scores and the interest rates can be quite high. A new funding option has been developed, peer to peer giving. Entrepreneurs funding entrepreneurs is a new, innovative concept. See the blog below for more info.
Getting Funding - I may have mentioned this previously, but one item that I have seen not to be included when asking for any type of funding is listing assets. Often times, an individual will ask for a type of funding and will neglect to list any assets/collateral that they have to complete the funding process.
Company shares for capital? - If you needed capital to start an exciting new business idea you had and either couldn't or didn't want to get funding from a lending institute, would you approach a friend, family member or another small business owner (e.g. perhaps your web designer) to partner with you? And if so, how would you split the ownership? Would it be equal or would you insist on being a majority owner? Thanks


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

How To Calculate A Minimum Fee For Your Services

Work at Home Moms and Their Bad Rap?

What Aweber Can Do For Your Online Business

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.