What can I do to raise money for my small business?
Raising capital to start, operate or expand your small business is one of the most basic of all activities, yet it can also be a complex and frustrating activity. In financing your business, consider using your own personal savings if your business is new, or other personal resources. Try hard not to use credit cards, as their interest rates can leave you heavily in debt. Small business loans are another option to consider, either from your bank, or from the SBA – the Small Business Association.
After using their own resources, savvy entrepreneurs often tap loans or investments from family members or friends who are interested, able and supportive of their vision. These loans typically carry low interest rates, if interest is charged at all, which can be a real boost to the bottom line, particularly as a business launches.
After personal assets or those of family or friends have been explored, one of the more common sources of funding include credit unions or banks. If you have and can prove that your vision is worthwhile and likely to succeed, banks or even venture capital firms will consider a loan or investment in your success. Banks will expect repayment with interest, while venture capital firms expect to become your business partner through equity or partial ownership. Uselton, Clay & Bright, P.C. can help you with preparing a business plan that will ease the financing process.