Four Tips to Fund Small Business Growth

Four Tips to Fund Small Business Growth

Growing your small business requires exceptional planning and plenty of time, energy and sweat. However, it also usually requires a significant amount of funding. In many cases, a business does not have enough funds available to pay for all new product developments or expansion plans. Between government grants for small businesses and other options, you may be able to find the extra funding that you need to accomplish your business growth plans and to seize the opportunities that are available to you right now..

1. Use a Grant

Government grants for small businesses are essentially free money, so this makes them one of the best financial resources to use. Before you borrow money or give away a portion of your company to a partner or an investor, explore all of the grant options available. The Internet is a great resource to use to locate grants that may be available to your business.

2. Think About Crowdfunding

Crowdfunding is a relatively new concept, and it allows you to fund a loan from dozens or even hundreds of individuals rather than from a single bank. There are many crowdfunding platforms available for you to use. You simply create a profile for your loan request, and you wait for people to show interest through partially funding your loan. This is a great idea if you have bad credit or if you do not want to go through the typical bank loan process.

3. Apply for a Small Business Loan

Applying for a small business loan is one of the most traditional ways to raise money. It continues to be a popular option because it is effective. You will need to have a formal business plan prepared, and you will need to provide the bank with all of your personal and business financials. The loan process can be lengthy, but this may be a great way to get the money that you need.

4. Find an Investor or Partner

Another idea is to locate a partner or investors. This could be a silent partner who simply gives you money in exchange for a share of the profits going forward. It could also be an active partner who brings networking connections, work experience or something else to the table as well as money that you need for growth.

Business growth rarely comes without its aches and pains. One of the most common causes of growth pains relates to finances. If you plan ahead and seek financing before you begin your growth and expansion plans, you may be able to reduce stress and even mitigate risk in some cases. Examine each of these financing options carefully. Remember that you could use money from multiple sources as needed rather than only from one source.


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