Have you ever thought about taking that big leap and starting a business? Do you already own your own business, but you need some capital to bring your vision to fruition? Whether you need $1,000 or $1,000,000 this little thread can help you figure out some next steps.
For the sake of keeping this short and sweet, let's assume you've already researched SBA loans, business lines of credit, and spoken with your personal banker about getting a business loan. My goal, in this thread, is to share my thoughts on some of the ways you can get financing, outside of speaking to your banking institution.
Remember The 3 F's. FRIENDS - FAMILY - FOOLS!
Starting, managing, running, and growing a business is NOT easy. But, if you are passionate about what you do, you can make it work. I do not use the word passionate lightly. If you do not have a passion for your own business, STOP READING NOW! I will assume those readers stopped and went on to careerbuilder or monster to find a new career.
Now, for you passionate entrepreneurs, let's tackle the 3 F's. Friends, Family & Fools. Yes, these resources can be your best source for getting capital into building the business of your dream. You will be surprised to find out which of your friends, and who in your family, share an entrepreneurial spirit with you. The risks are high with any investment, and doing business with friends and family has its pro's & con's. But, they can also be a great source of support, brainstorming sessions, and yes CAPITAL. Talk to your network, let them know what you are trying to do, and always remember to act like a professional, even if you are getting capital from a "fool." ;-)
If you tap out the 3 F's, look into the following: Venture Capital & Angel Investors. After you search these key words, make sure to research "Venture Forums." Most city business chambers have resources available to small business owners, so make sure you take advantage of them. Just make sure you have a solid business plan ready, professionally bound with non-disclosure agreements, pro-forma statements, references, and resumes for key executives in your business. Don't forget to include influential adviser's that you can call upon for advice.
Last note, if you are a military veteran, make sure to research unique options that may be available to you. The Patriot Express Loan is one example of special funds that may be available to you. They carry higher levels of government guarantees, which lowers the lenders risk of giving you a loan. Basically, the government is willing to guarantee a higher percentage of your loan, and that makes you a prime candidate in the banks eyes as you lower their risk.
Good luck business owners! Feel free to post comments on other useful resources that may be available for entrepreneurs like yourself.
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