Tags: Business News
January 17, 2014Are you trying to raise money for your small business? Most small businesses need to spend money to make money, and the first step in being able to spend money is to raise money.
Most small business owners fund their business through their own personal finances, such as using their savings, getting an equity loan on their house or tapping into their IRA. There are plenty of other choices that allow small business owners to raise money other than borrowing it from themselves.
A popular choice is to borrow from family and friends. Your family and friends want to see you succeed, and may even want a stake in business potential you have. Make sure you put any lending agreement in writing to ensure both parties understand the terms of the loan.
Crowd funding, while still in its infancy, has become a popular way for small business owners to raise money. Crowd funding allows you to raise money from the general public by proposing what you'd like to fund, and then having people choose how much, or little, they want to give you.
One of the most common and traditional ways is bank funding. Your banker may request that you have your loan guaranteed. Securing your loan with the equity in your business or home, or having your loan guaranteed by the Small Business Association, will require you to meet specific criteria.
There are a lot of resources available for small business owners to raise money. Evaluating all your options and selecting the best ones will help you raise money for your small business without having to borrow everything from yourself.
Dick Jones is the Founder & President of Jones Simply Sales in Alpharetta, Ga. As a 4th generation sales professional, he has over 30 years of experience advising, coaching, consulting and working with small business owners. Office: 770-663-4681, web: www.simplysalesllc.com