Funding Your Business through Each Stage
Just like living things, businesses go through various stages. Many are conceived in the minds of an entrepreneur, starting out as a mere idea. Then, with mentoring, financing and hard work, the idea becomes a physical business. From startup to expansion and everything in between and beyond, small business owners need access to business funds.
Find the stage of business ownership that you are currently in below, to discover the corresponding business funding method.
Startup
Venture Capital
Venture capital is a type of business funding where professional investors fund early stage businesses with a potential for high growth. “Venture capitalists are long-term investors who take a hands-on approach with all of their investments and actively work with entrepreneurial management teams in order to build great companies,” as stated on the National Venture Capital Association’s website.
According to the association’s data, there are approximately 741 venture capital firms in the United States that manage approximately $257 billion. Entrepreneurs looking for venture capital for their startups can go to this website for a directory of venture capital firms.
Development and Maintenance
Business Cash Advance
If your business is already up on and running, chances are, you need cash to purchase inventory, repair equipment, advertise or even keep your business above water during rough times. At this stage, you may not qualify for a traditional bank loan, as qualifications are based on personal financial history. The business cash advance is a great funding method for the development and maintenance stage of business because:
- The requirements are minimal
- The repayment goes with the flow of business
- There are no restrictions on how the funds can be used
- Your account can be renewed every three to four months
Expansion
SBA Loans
The Small Business Administration’s 504 program “provides small businesses requiring ‘brick and mortar’ financing with long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization,” (SBA website). The Small Business Administration guarantees loans made by other lenders.
Small Business Poll: Have You Been Able to Secure Business Funds?
We want to find out how small business owners really feel, so we’ve created a poll to find out more about small business owners’ ability to secure business funds.
Have you been able to secure business funds since the beginning of the recession in early 2008?
a. Yes, I got a bank loan, it was easy!
b. Yes, I got a bank loan, but it wasn’t easy.
c. Yes, I used an alternative to bank loan and it was easy!
d. Yes, I used an alternative to a bank loan, but it wasn’t easy.
e. No, I tried to get a bank loan and I was unsuccessful.
f. No, I tried to get an alternative to a bank loan and I was unsuccessful.
g. I have not attempted to get business funding since the beginning of the recession.
Click here to vote and don’t forget to check back for the results.
Also, check back for the next poll focusing on the issues that real small business owners face and feel free to suggest a poll question.
