Pursuing entrepreneurship is a rewarding and exciting career choice! Once you’ve decided to create a small business, you’ve completed the first step in personal and professional fulfillment. Now, you’re ready to take tangible steps to achieve your vision of commercial success!
With any business, it is crucial to create a strategy to provide a sturdy foundation, and you’ll need a strategy to determine the most optimal financial resources for your business! Hiring a coach to create your unique strategic plan for your small business is a great investment: you’ll receive expert guidance so you can feel confident in acquiring sources of capital. For a general overview of financial possibilities, I will specify some of the top methods for small business funding:
- Credit cards: you’ll make the minimum monthly payments and spend within the credit limits. Avoid making late payments to avoid interest charges. This method provides an affordable source of capital because the monthly payments will often stay low.
- Venture capitalists: once your business achieves high growth potential and is pursuing commercialization, you can pitch to investors to provide capital. In return, these investors receive an equity stake.
- Family and friends: people closest to you can invest in your business! I recommend creating a business plan beforehand to maintain security and professionalism, as you’ll need specifications for the financing you’re receiving before being funded!
- Factoring: this involves selling receivables – the money due from customers for services or goods acquired through store credit or payment installments – to a financial provider (or factor) for quick cash. This method is beneficial when a business experiences a cash flow shortage when receivables outnumber sales revenue. There will be a fee charge.
- Crowdfunding: this is a method of acquiring funds gaining significant traction. It is a way to acquire public funding for businesses, projects, individual healthcare, and more. You’ll be able to receive financial contributions from individuals and companies alike. Most crowdfunding sites charge a fee. Carefully read over the terms and conditions.
- Peer-to-Peer (P2P) Lending: this method, also called “crowd lending,” is similar to crowdfunding, where you can acquire short-term financial assistance by getting loans from other people rather than through a bank.
If you reside in the greater Post Falls area including Coeur d’Alene ID, Hayden ID, Spokane WA, Spokane Valley, or are an international client, contact FocalPoint Business and Executive Coach Keith Atneosen! Keith Atneosen is the founder of Freedom Summit Consulting LLC, where he assists business owners with preparing to transition the stewardship of their business. Keith Atneosen earned his Master of Science in Financial Sciences through The American College, giving him years of financial knowledge and experience. Book a consultation by calling 208-508-2416, emailing katneosen@focalpointcoaching.com, or clicking here to take the Business Growth Score assessment!
