5 Tips to Help You Secure Funding for Your Small Business

 

5 Tips to Help You Secure Funding for Your Small Business

Capital is unarguably the most important resource every entrepreneur needs to get a business running. Even if you have an online business that requires a minimum startup and running capital, you’d still need more funds at some point to scale up your business.

Whether you’re just starting out or you simply need money to save a dying business, you don’t have to rely on your own experience alone. You should get insights from experienced entrepreneurs especially when it concerns sourcing for funds.

Here is some smart funding advice you’d get from seasoned small business experts.

1. Show business commitment

When sourcing for business funds, the fund providers will definitely assess your level of commitment using different parameters.

If you’re applying for a loan, most financial institutions, especially the banks, would have to evaluate your credit score. If you have no or imperfect credit though, consider getting expert help to secure a small business loan with no credit. Some companies specialize in helping businesses with just that.

Again, if you’re looking for an Angel Investor or a Venture Capitalist to provide the necessary funds, the main considerations are the business growth potential and possible return on investment.

2. Prepare a great business plan

A good business plan goes a long way to determining whether or not you’d get funds for your business. Therefore, you need to make it really great. Although it shouldn’t be too complex, it should comprise all the essential items.

For existing businesses that only need more funds to grow, you definitely need a well-documented account statement. If the business has the potential for growth but there are issues concerning management procedures, cash flow, and inventory, chances are you could miss out as a result of the defects here and there.

3. Perfect your presentation

A great paperwork can strengthen your chances of getting the funds that you need. However, your proposal presentation also plays a great role. The clarity of your presentation typically gives you an edge especially when you can explain every single term that’s in your document without ambiguities.

Do ensure that you’re making the right presentation for the right target audience. For example, if you’re participating in the ‘Dragon’s Den’ or ‘The Pitch’, you need a combination of workable business idea and a good presentation to stand a chance of sealing a deal.

4. Explore available opportunities

Unfortunately, many aspiring entrepreneurs believe that financial help from friends and family, personal savings, and traditional loans are the only sources of funding they can use. While these also help, there are more options than you can imagine.

Basically, you need access to the right information and to explore the funding opportunities that avail. Funding opportunities include loans, government grants, crowdfunding, business merger and partnership, vendor financing, asset liquidation, and a host of others.

5. Take and follow advice

The financial landscape is changing at a very fast pace. What used to work a few years ago might have become an outdated theory in the present age. Therefore, there’s always a need to seek financial advice from experts.

A good financial advisor should be able to guide you to the most appropriate method for financing your business. But beyond that, you must also be willing to implement the suggestions having weighed the pros and cons in the light of the existing realities.

Author:.

Jimmy Rohampton is a freelance writer, blogger and business consultant from Southwest London. He travels the world and helps people master blogging and online marketing at HowToCreateABlog.org. Think you're interesting and he should know you? Say "Hi" to him at Jimmy@HowToCreateABlog.org

Go Deeper | Website

Want More?

 
New Graphic
Subscriber Counter