- Your local bank is a good way to find funding for your businessbank image by Pefkos from Fotolia.com
Among the many steps of starting a small business, finding financing is one of the most important. Before you start your financing search, you should have a business plan and estimates of how much money you expect your company to bring in during the first few years. You also need to have prepared a presentation about your business, and expect to answer specific questions about your business. - A few grants are available from governments and organizations for people starting businesses. The majority of funds, though, are given to non-profit organizations, educational institutes and lenders. Check with your local and state governments, as well as federal government agencies, when searching for grants. Business.gov is a way to find a listing of grants available to your industry.
- You have several options for loans. You can obtain personal or business loans from your bank or credit union, or you can look into loans directed at your specific industry. The Small Business Administration (SBA) also works with lenders to offer loans partially guaranteed by the agency. Generally, a loan guaranteed by the SBA will have longer terms than the bank's usual business loans.
- Check with your local and state government economic development offices. There may be additional requirements to obtaining these funds, such as having matching funds, so be prepared to meet those as well as having your documents in order. Keep in mind that these offices are looking for businesses that will strengthen the local economy, so be able to explain how your business will do this.
- You can also work with investors to get the capital you need. You can sell shares of your company, find a partner or work with venture capitalists. You should consult a lawyer in regards to any of these options. Your family and friends may also be willing to invest some money in your business.
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