Every aspiring new business owner with a dream must deal with the significant challenge of securing the funding for his/her startup. It takes capital to turn dreams into reality, so adequate funding is an essential need. The good news is that plenty of good funding options are available.
Startup Funding Requirements
To secure funding for your startup you will need a well-developed formal business plan that is specific; one that demonstrates the enterprise’s growth potential. It will need to include a timetable with milestone achievements and include realistic financial forecasting, including projections for cash flow. You will need to determine how much money to ask for, including the uses intended. And you will need to choose the right funding options.
How to Get Financing for Your Startup
Financing options for your startup include:
• SBA loans provided by the Small Business Administration are one of the most commonly used funding solutions. These are loans (not free government money) that are guaranteed by the SBA and that are available through participating financial institutions. They come with favorable rates and repayment terms.
• Traditional term loans that are available through banks and credit unions. Here, having a great relationship with a bank or credit union can be very beneficial in both the short and long term.
• If you are purchasing a franchise, the franchisor may have financing solutions available to you.
• Venture capital investments can be secured for highly promising new ideas, but such an investment comes with high investing expectations.
• Angel capital can be secured from wealthy individuals who invest their own money in small businesses.
• Online lenders are increasingly being used for non-traditional sources of funding.
• Friends and family are commonly used sources of funding.
Startup Funding Mistakes to Avoid
Don’t make these startup funding mistakes:
• Not having precise funding objectives.
• Not having solid financial projections.
Seek Expert Funding Assistance
Contact POM Capital & Finding Services to help achieve your business goals. Experienced professionals with great solutions tailored for your startup financial needs.