Where and How to Get Business Funding Quickly and Easily? What are some of the tips?



Are you looking to start up your business but don't know the sources that can help you with financing? Or is your business growing and you want to raise a capital funding? If so, you are at the right place. We will try to list all the options you have out there to make it easy for you to find funding for you business. Almost every entrepreneur who are in the business have gone through the problem of business start up cost. We have gathered resources where experts share how they raised the money and where they got them from. The source of business funding is very vast from a simple government grand and loans to pitching an angel investor and filing and initial public offering (also popularly known as IPO). Traditional way of getting cash for any kind of business has been filing out forms at a local bank and get a loan money upon an approval. But things have changed a lot, there are so many ways to get business funding easily and quickly without going through too much of paper work - thank to the computer and internet. Almost all the process from layout out plans for your business to getting business financing to marketing your company can be done online. The first and foremost task involved in getting a business financed is to make a clear, specific and detail plan about what your business is about, its potential to grow and make profits, how much funding it is lacking as of now, and your experience and resume as a business owner. You and your management team should be strong enough to go through hard times, and smart and intelligent enough to take the right direction each time you face an obstacle, and finally they should be confident enough to make their idea stand out during meetings.

Once you have done this rigorous work, you are ready to look at the business funding sources. It is best idea to use your own cash money and assets to fund your business because you are responsible for your own and often times borrowing money from other entities will eventually have you pay them back with interests. And if your personal savings and assets aren't enough to fund your business, then you can reach out to your family and friends. They are the people who you know will do their best to help you out. That's how it used to be in old days when banks were the only source of financing a new business and it was very hard. Commercial banks are still very dominant, but in a recent survey and study published, it is said that more than 40% of businesses in the United States are still financed by private investors, including family and closed friends. The main reason could be because they know who the entrepreneur is and trust his or her strengths. If you have many closed family, relatives and friends, then your chances for getting a fully funded business becomes more possible. In such circumstances, you should list all of them one by one and guess along with how much money they could possibly borrow you. Then categorize them based on how close they are to you, how much they know you and how much they trust you. Last and third step is to look at the both the list and the category and decide which ones should you go first for help. Also do check out microlenders.

If the money raised is still not enough, you should start pitching angel investors. They are the people who invest money in businesses that are in the early stages of growing and they intent to make profits from it - the business or the company doesn't necessarily have to be growing at the time of pitching, it could be just a start up. The most important part in pitching for angel investors and venture capitalists is that you make sure you have a clear understanding for your business from A to Z - meaning you should know what, where, how and why details of your business. When you get to meet them, you get only a certain and limited amount of time to pitch for your business start up funding so you have to be quick but in the meantime let them know the important aspects of your business that will ensure profits. Most important part is your product or the services that your company will be selling - so you have to present them with the detail and specific information about why your product and service is best in its industry compared to the competitors. Finally, before you end your presentation in front of your potential business fund and financing investors, make sure you don't end it quietly. Few important tips - is to end strong by highlighting the key elements and factors that pretty much guarantees your business will be successful such as the product itself along with the unique marketing strategy you will be employing to generate awareness in people and convert them into your customers. Also be honest with them, they are experts in their own business and do research through which they can tell if you are lying or telling truth eventually. Tell them the strenghts of your business and the weakness that you are working on resolving. Don't bring any emotions - emotional baggage won't work for them. They look for experience and stong business man. So you see it is hard and stressful work, but once you succeed you will on your way to achieve a success and making good money.

You can also sell your assets and properties to finance your new business. It can include small jewelries that are out of fashion and you don't wear anymore, time share real estate properties, your grand grand parents cars sitting in the garage, and anything that you don't need and use. A lot of people also don't know they can use their home to get money for a business - you use the home equity mortage. You can alos borrow against your insurance policies. These can raise more than half of its cash value to the benefit of your business financing. One of the most popular and growing way to funding new business is using the 401 and other retirement funds. Then there are credit cards, which are really quick and easy but you have to keep in mind the high interest rates they charge; so if you do get a credit card to fund your business make sure you pay on time. Credit union can also lend you some money since you are the member of that union group; you have to pitch there as well. You can also reach to factoring; it involves selling the accounts receivables to the factory company and get funding quickly. You should also try US government Grants, which are non profit so it will be good for your start up business. SBA (Small Business Administration) loans are like that; once SBA approves your application, you will get a loan form a lender to whom the government guarantees the payback. So as you see, there are many choices and options to fund your business. The trick is to find the best way to finance your business.