- Small Business Funding
- June 6, 2013 | Author: Brad A. Denton
- Law Firm: Gunderson, Denton & Peterson, P.C. - Mesa Office
Obtaining funding is an important step in setting up a business, and there are different ways to get the money that you need. Here are 6 options for funding your small business.
1. Small Business Loans
The first choice to obtain funding is typically a small business loan. This can be done through your personal financial institution. However, many banks are reluctant to loan money to an unestablished business. You can get around this stipulation by seeking financing help through the Small Business Administration, which helps entrepreneurs find financing. With the SBA backing you, banks see you as less of a risk and are more apt to lend you money.
2. Private Investors
Getting investors is a great option for small business funding. It may require you to split the ownership and profits, but you will be able to fund your business more quickly and easily. Business investor terms vary widely, but business investors can be silent partners, and may allow you full control of the business in exchange for a portion of the proceeds. The better you know your investors, the more control they are likely to let you keep.
3. Angel Investors
Like private investors, angel investors help fund small business. They are typically high net-worth individuals or companies that take an interest in a startup business, and help that business out with their money and experience. They will typically maintain control of key parts of your business. Speak with an Arizona franchise attorney to see if getting funding from private investors is right for your business.
4. Venture Capital
Venture capital works much like a private investor would where you would. However, venture capital typically involves a company or group, rather than an individual. Venture capital firms are typically interested in companies that have extremely high growth potential. There are many venture capital firms available, and you can even find their information online. You can also contact the Small Business Administration and they can help you get connected with a firm that would have interest in your type of business.
There are many grants available for small business owners through the Small Business Administration’s Small Business Innovation Research Program. There may also be state, government and minority grants available in your area as well. Though they are not always the easiest to obtain, they are worth a shot since the money will essentially be free.
6. Personal Funding
Don’t overlook the possibility of funding your small business with a personal loan. Many small businesses have been started with the owners’ credit card or home equity loan!
Starting a small business takes money- -often more money than you have. Getting funding is a good way to finance your small business venture. Take a look at any of these 6 options and see which is best for you and your business. If you are a small business and need legal advice about getting funding for your business, contact our Arizona business lawyers today.
Gunderson, Denton & Peterson, P.C.
1930 North Arboleda, Suite 201
Mesa, AZ 85213
Phone: (480) 655-7440
Fax: (480) 655-7099
Email: [email protected]