Finance

Get Financial Assistance For Your Business

Business owners usually have the right motives behind starting their business. They put together their ideas, plans, and other things needed to launch. However, many of them get stuck when it comes to FINANCE. 

One of the biggest challenges for entrepreneurs and small business owners is finding the funds to launch and grow their businesses. 

Bootstrapping

Self-funding your business can be challenging, but many now-successful startups have gone down this path, and you can as well.

In the idea/experimental stage, you can use your own financial resources like money from a savings account or careful use of personal credit cards. As the business grows, it brings in more money that enables further growth. 

Sometimes, you don’t need outside cash just yet, and nor do you need to sell part of your company. Rather, you must “pull yourself up by your bootstraps” by using your own capital to launch.

Friends and Family

If you don’t have your own savings or your growing business needs more than what you have, consider inviting family and friends to invest in the company with the understanding that their money may not be returned.  

This is because, unfortunately, businesses fail and the loss of capital can then cause hurt feelings, ruin friendships and make for unpleasant family gatherings. 

Be sure that your investors know the true risks of what they are getting into. Both parties should think of this investment as a grant with no strings attached. If the enterprise succeeds, it would be nice to reward them for taking a chance on your business. 

Crowd/Cloud Funding 

Crowdfunding – allowed under the JOBS Act allows for a wider pool of small investors with fewer restrictions and is ideal in the early stages of a business, especially if you don’t qualify for a bank loan, or aren’t ready for angel or venture capital funding.

There are many sites that have started crowdfunding already. These sites allow you to pitch your ideas to investors via the internet and if you’re successful, you get multiple investors to contribute funds to your idea.

To get started on this, it is important to do your research on sites that allow this and also understand the rules and restrictions on how cloud funders can operate.

Angel Investors

As your business reaches the next level of growth and you see steady revenue on the horizon, it may be time to begin to approach angel investors if you need more funding. 

This affluent individual – or a group of people usually pools their research and resources and provides capital for a business start-up usually in exchange for convertible debt or ownership equity.

They can be found in most communities – and on the Internet, with a description of their purpose and objectives. After doing their due diligence, these groups will determine if your business meets their requirements and if so, will schedule a meeting to gather more data. 

Search online for local angels or talk to people who may know people who are interested in funding your area.

Loans

In the later stages of your growing business, you might need a bank loan for various needs, including operating capital and long-term growth. 

It is no news that in this part of the world, securing a business loan from banks is mostly an uphill task as many of them will require several years of financial information on both the business and the entrepreneur.  They will also want collateral amongst other ‘difficult to get documents.’

At Rosabon Financial Services we help small businesses and entrepreneurs to cross this hurdle by giving them access to flexible, affordable, and collateral-free loans to boost their businesses whenever they need it. Find out more about our Loan options Here.

With these five means of funding in mind, you’ll significantly increase the odds of securing the capital you need, whatever stage of business you are in.

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