Finding success in any small business is an exciting time. When the company has reached the level where growth is imminent, and the future is inspiring, everything seems rosy.
Until the realization sets in that growth means the need for more capital to support the expansion.
Now it is time to find the money to keep the company moving forward into the future you foresee. Here are four pathways to finding small business growth that will take a bit of the pressure off when the time comes.
Find Investors
Finding investors is not always the easiest step to take, but if the reason for increasing capital is the growth or expansion of the company, options are much easier to find. One such investor opportunity to look into would be that of angel investors. Angel investors are people or small groups who provide capital to a business venture in exchange for a portion of the equity value of the company.
They are people who after viewing your company invest in the company and what they see in it, instead of what they see getting out of it. Now you may be wondering how to find an angel investor. This step will require you to do some research and look for investors interested in what your company offers.
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Look Into Loans
Another option for finding the capital needed for your growing company is loans.
There are multiple loan options out there for small businesses, including SBA loans, personal loans, title loans, among many others.
Each of these loan options will have its requirements for qualification and limits for funding amounts.
SBA loans will have the most stringent requirements and possibly provide the highest capital. Personal loans will depend primarily on your credit score and your income-to-debt ratio. If none of these qualify, you can look at less conventional loans, such as a title loan, which will allow you to borrow money based on the title of your car.
It’s not ideal, but something to concern when all other options are closed. Each loan type will require an assessment of the company’s assets and current debts to decide which loans work for the business’s needs.
Utilize Company Fundraising
Fundraising is a way to raise capital for your company as well as get your name out to the public.
This process serves to provide funds for growth that does not involve a loss of shares or profit, while at the same time will offer connections for future charitable fundraising. There are some rules to follow for fundraising ventures.
Staying within these guidelines will increase the successfulness of your campaign. Some of these rules include analysis of company assets and needs and making sure that the fundraising goals are reasonable with information to back the requirement.
Giving donors insight into future plans will help them feel their generosity will go to good use.
Dip Into Personal Savings
One final option for funding a company’s growth is using your personal savings. While this may not be the first choice for business funds, sometimes it can be the best. Using personal savings is like becoming your own angel investor.
Although this can be a risky venture, the fact that the company is already established and needing the funds to grow will take away a bit of the risk for return on your investment.
Choosing the Right Path to Success
Finding the right pathway to success depends solely on the needs of the company, but the journey does not have to be impossible.
Utilizing the above list may help you find the relief needed for the expansion justly deserved.
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— Will Corry (@slievemore) March 5, 2019
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