30 Dec How To Fund Your Business
One of the fundamental challenges in growing a business is sourcing funding that will carry the company forward over its first year of operations. Working with an investment specialist can help you through this challenging process. Our team at Innisfil Invests In You has decades of experience in business financing, and in this new post, we’ll present our tips for funding your business.
Choose a Small Business Loan
One of the leading options for growing companies is to get a small business loan from their local lender. But before you approach your lender with your loan proposal, ensure you have a full understanding of the process. You will need to show the lender your business plan and explain how you plan to achieve your financial goals for the years ahead. You will also need to have a strong credit rating, as lenders will only provide funding to skilled professionals with a strong background in responsible financial management.
Attract Angel Investors
Angel investors are investors that provide you with start-up capital for your company. To attract an angel investor with significant funding, make sure that you’re succinct in your pitch and avoid industry jargon. Angel investors simply want to know where their money is going and how you’re going to return it to them with interest over time.
One important element to remember is that angel investors tend to be savvier than the average investor and are wise to the financing tricks some small business owners pull. Make sure you show your experience in the industry and highlight the resources backing your business to show the investor the legitimate value behind the opportunity.
Look for Government Financing
In some cases, you may be able to get government financing such as grants for your new small business. In comparing the various government financing options, it’s important to learn the difference between grants and contributions, which do not have to be paid back, and loans, which come with specific repayment processes.
One example of the loans available is through the Business Development Bank of Canada, which can provide a loan of up to $100,000 within just five business days. Before applying for this type of loan, make sure you speak with a local small business funding expert about the process.
Review the Option of Crowdfunding
Many of the most successful and fastest growing companies in the modern marketplace have got their start in the industry through the process of crowdfunding. The process involves placing your company in front of a large number of potential investors online, who can then choose to invest smaller amounts in your company with the goal of achieving a quick return for their investment. Before placing your company on a crowdfunding website, research the site and the stipulations that must be followed in order to accept crowdfunding.
Our experienced team is here to guide you in financing your small business. To learn more about the full range of funding options, follow Innisfil Invests In You on Twitter, Facebook, Instagram, and LinkedIn.