As a small business owner, one of the major questions you have to ask yourself is how are you going to fund your business. It costs money to start your business, to run your business, and to grow your business. Where does the money come from? Well, that depends on your business needs and financial standing. Let’s take a look at some options that may be available to you:
Self-funding
This type of funding can be a good option for lean startups who just need a little help to get started and can come in the form of savings, help from family and friends, and even tapping into that retirement fund. Don’t spend more than you can afford, and check on the risks involved if you are considering an early distribution from your retirement fund.
Business Loans
A business loan can be a good option if you want to retain all control over your business and have solid financial documents. There are several different loan options available, including loans guaranteed by the Small Business Administration. There is even a dedicated government fund to provide capital for small business loans through specific lenders. Check out more information on the US Dept of the Treasury website.
Venture Capital
If you have a good business plan and an interesting product, you may want to consider venture capital for your funding. Venture funding can be great if you anticipate high growth in a short amount of time. Funding through investors typically provides more capital than a business loan. Instead of a loan, be prepared to hand over equity in your business. If you go this route, be sure to do your research on potential investors. You may want to consider a Small Business Investment Company that is licensed by the SBA.
How you fund your business is a major decision and should be carefully thought out.
Whichever route you choose, you will need to be prepared. Whether you are borrowing money from your family, trying to get a loan, or meeting with potential investors, you need up-to-date financial documents. At IOOGO, we have worked with many small businesses as they work through funding their business. We are ready to help you with all of your business accounting needs so that you can get the funding you need. Contact us today!
Excited to build your business? These services will help you:
Don’t forget that there are still pending dates on corporate taxes!
New Upcoming Deadlines:
September 15 — Q3 Estimated Payments Due
September 15 — Extended deadline for partnerships and S-corps
October 15 — Extended tax returns due
