Are you a fresh entrepreneur? Are you looking for funding ideas for your business? Here are a few ideas which will help you to fund your business:
Angel Equity – If you want to get your company to make some real progress then find a person who is an executive in the respective industry to invest in your company. He should be ready to give you venture credibility compared to other companies and start-ups.
Smart Leases – Taking fixed assets on lease basis helps preserve cash for working capital i.e., to cover up inventory and so on. It is usually tough to get financial help for an unconfirmed business.
Bank Loans – Banks are similar to supermarket of liability financing. Banks usually provide short-term, mid-term and also long-term financing according to your requirement. They provide funding for all kind of needs such as equipment, working capital, and also real estate. With this you can of course generate sufficient funding to cover the interest payments and also give back the principal amount.
State and local economic development authority – The state or local economic-development organizations may enticingly charge low rate of interest while providing funds along with a bank.
Customers – Taking advance payments from clients and assuring to provide them service assuming the conditions are not too burdensome and can provide you the funding you require. At a comparatively low cost, you can keep growing your business. But also remember advances exhibit a certain level of commitment.
Vendors – You can take funding from your vendors or suppliers. In this way your financers do not control your business but you do. Make sure to subject yourself to a handful of authoritative supplies.
Family and friends – Friends and family can be the most indulgent investors if you are lucky enough. They will not ask you to pledge your house and some might even agree on low interest rates.
Small Business Innovation Research (SBIR) Grants – Clearing through all the paper-work process and SBIR grants is a great method to seizure your intellectual idea into great money.
Tax Increment financing – TIF grants are generally geared to the development of real estate in a few areas. These grants can be as high as 20% to 30% of the price of the project depending on the area.
Internal Revenue Service – IRS does not do funding. It helps you to reduce your expenses. It evaluates if you can use your profit to expand your business if you pay high amount of taxes.
Bootstrapping – Most of the billion dollar entrepreneurs do not rely on financers for funding so that they can control their business and not their investors.