If you’re contemplating getting funding for your startup, start by researching your funding options. Once you’ve decided which financing option is best for you, use the following resources to do your homework, find the best company to work with, and position your business as an attractive investment.
Small Business Loans
By far, the most popular type of small business loans are those backed by the Small Business Association. Banks and lenders that offer SBA loans are currently offering loans with interest rates between 4 and 10% and 25 year terms. You can take out an SBA loan for:
- Starting a business
- Working capital
- Purchasing property
- Equipment, fixtures, Inventory
- Lease-hold improvements
- Refinancing debt
The SBA offers general small business loans (through its 7(a) loan program) as well as those targeted to businesses with specific needs, like real estate and equipment loans, microloans, and disaster loans. The SBA also offers grants and other financial assistance.
There are other types of loans to consider as well. If you need a working capital loan to keep cash flowing, look at companies like Kabbage. If you are a minority business owner, look to organizations that cater to minorities, such as the National Minority Supplier Development Council, for financing opportunities.
Venture Capital & Angel Investments
If you want to bring on investors to your startup, spend plenty of time beforehand researching what to do, as well as what not to do in your pitch. Research investment firms to find the ones that invest in your industry and who are actively looking for startups to invest in.
Make sure you are incorporated before you pitch, because investors don’t want the liability of funding a sole proprietorship.
Stay abreast of the VC and angel investor community through these resources:
If you’ve decided to go the crowdfunding route, look at each platform, because they each have slightly different focuses, as well as fee and payment policies.
Also, don’t underestimate the importance of a solid crowdfunding marketing campaign. If you’re not adept at doing your own marketing, hire a firm that specializes in crowdfunding, like Jamis Sales Success.
There are countless additional resources in the forms of companies that offer funding, free advice to help you get funding, and other financing websites and blogs. Do a little digging, and you’ll uncover a goldmine of information that will help you finance your business.
CorpNet can help you take that first step toward getting funding. We can incorporate your business in as little as 24 hours. Start your incorporation process here!