{"id":3813,"date":"2022-05-29T06:37:48","date_gmt":"2022-05-29T10:37:48","guid":{"rendered":"https:\/\/fundingzest.com\/?p=3813"},"modified":"2022-06-08T05:09:58","modified_gmt":"2022-06-08T09:09:58","slug":"how-will-i-fund-my-business","status":"publish","type":"post","link":"https:\/\/fundingzest.com\/guides\/how-will-i-fund-my-business\/","title":{"rendered":"How Will I Fund My Business?"},"content":{"rendered":"
It\u2019s exciting to start your own business. It can also be overwhelming, especially<\/em> when figuring out how to pay for it.\u00a0 So, if you\u2019re wondering How Will I Fund My Business? The good news is that you can have a variety of ways to fund it. You can use a combination of methods and of course, some will be better than others due to risk and future commitments. Funding can even affect your new business\u2019 financial success.<\/p>\n \u00a0<\/span><\/p>\n If you’re considering launching a new business you may want to consider doing it in one of 2021’s 10 Best States to Start a Small Business.<\/span><\/p>\n When starting a new business one of the things that can help its success is where you open that business. Obviously if you don\u2019t live in one of these states or can\u2019t move there use your online presence to target these states and their best markets.<\/span><\/p>\n The below list takes into account each state’s – tax climate, consumer spending in that State, number of entrepreneurs opening new businesses, rate of survival, Business, Labor Costs, and the state\u2019s weather and\/or Climate. The top 10 include:<\/p>\n \u00a0<\/span><\/p>\n Your business will be unique and so your funding. This step of figuring where the money will come from is ultra-important in preparing to open your new business. <\/span><\/p>\n First figure out how much money you will need through funding. Make a list of every expense possible and add a 15-20% cushion for unexpected costs. If you\u2019re buying a franchise, the franchiser will most likely want you to do as well as possible so will supply an exhaustive list of all foreseeable startup costs.<\/span><\/p>\n Also, seek out and use the resources of local organizations and the SBA (Small Business Association). If possible, network and talk with companies doing the same thing but in other states or markets.<\/span><\/p>\n <\/p>\n Now you know how much you\u2019ll need so it\u2019s time to think about where it\u2019s going to come from. <\/span><\/p>\n Perhaps you\u2019ve won the lottery! If not, it’s more likely you\u2019ve thought about how to fund your business for quite a while. Maybe you began saving early so you have enough to get going. That\u2019s fantastic!<\/span><\/p>\n Self-funding can give you full autonomy. You get to call the shots without input from others.<\/span><\/p>\n The reality is that in today\u2019s business climate many new business owners aren\u2019t able to completely self-fund and look elsewhere.<\/span><\/p>\n Depending on your situation, dipping into savings or 401 (k) might be too risky and expensive due to early-use fees and penalties. Also, if you\u2019ve reserved those funds for an emergency, education, retirement, etc looking elsewhere for your funding makes sense.\u00a0\u00a0\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n If self-funding is out of the question or only gets you part way there then\u00a0 you could borrow from family and friends but there are inherent relationship risks with going this route.<\/span><\/p>\n Looking for investors or partners is an option. Again the SBA may be able to give you pointers on finding investors. Check out SBIC loans. Schools and other businesses in the community may be able to help you find interested partners.<\/span><\/p>\n Obtaining venture capitol from investors has it\u2019s good points and it\u2019s not so good. You\u2019ll get your money but usually you give up some ownership and control of your business. This investor may want to play a role in your company and on a day-to-day way. You need to think about how that will affect the business you want to grow.<\/span><\/p>\n Having an experience partner or investor could help you grow the business more quickly. They may ask for a seat on your board of directors (if applicable), an equity-only arrangement or they want more active involvement. They may demand some control over direction and focus in order to protect and grow their investment. A big risk here is that your business may not end up being exactly what you envisioned.<\/span><\/p>\n <\/p>\n There are several steps on the way to obtaining venture capital to fund you new business. Follow these 5 steps and you’re off to a good start.<\/span><\/p>\n You may find an individual who invests or a tradition firm offering venture capital. You want a reputable company and one with a track record for funding startups.\u00a0<\/span><\/p>\n A comprehensive business plan will be required. Seek help if you’ve never done one of these before. Savvy investors know what their looking for. In fact, they may be willing to share exactly what information they will need from you.\u00a0<\/span><\/p>\n Investors want to be assured that you’re a good risk and will want to know who will be managing the company, the market you’ll be targeting, your products and\/or services on offer, whether you’re in compliance and your financial documents to date.\u00a0<\/span><\/p>\n This can take some negotiating to hammer out the details of funding amount, involvement in your company and other requirements for moving forward.<\/span><\/p>\n Unlike a personal loan, often venture capital funds arrive in ’rounds’. This means that as you meet agreed upon company milestones, more capital lands in your bank.\u00a0<\/span><\/p>\n Make your funding possible with crowdfunding where lots of people invest smaller amounts to bring a business to life! Crowdfunders are unique \u2018investors\u2019 because they don\u2019t\u2019 get part of your business, control or any financial return.<\/span><\/p>\n What they do get is some kind of \u2018gift\u2019 in return that thanks them for their help in getting your business off the ground. The gift often comes in the form of one of the products produced thanks to your support or other perks. They could get to meet you, the owner, or get free \u2018coffee\u2019 or whatever your service is for life!<\/span><\/p>\n Crowdfunding participants love being able to say I helped make that happen J. As a business owner this is a no-risk option. You keep control of your business, you typically don\u2019t have to pay back the crowd funders and you have a built-in fan base for once you launch your product\/business.<\/span><\/p>\n A small business loan could be the answer if you don\u2019t have enough savings and you\u2019re set on keeping control of your business. Before applying for this type of loan prepare a comprehensive business plan and a full account of expected expenses. In addition, be ready to show a projected finance schedule for your business that includes the next 5 years.<\/span><\/p>\n If you haven\u2019t done this work then lenders get concerned that you haven\u2019t given this enough thought. It makes you look like you wouldn\u2019t be a good lending risk.<\/span><\/p>\n With your plans and other materials in hand reach out to credit unions, banks and the SBA to apply for your loan. The SBA could agree to guarantees your loan.<\/span><\/p>\n Word of caution: Interest rates and terms can vary hugely. The difference in a percentage point of additional years added to a loan could mean hundreds or even thousands more paid in interest. That additional interest could make it harder for you to pay back your loan. This could hurt the financial success of your new business. So if you are approved, don\u2019t just take an offered loan without doing your homework.<\/span><\/p>\n If you\u2019ve had no luck at your bank, credit union, or the SBA try a broker lender, like Funding Zest<\/a>, for a personal or payday loan<\/a>. The application process is 100% online, you get an instant onscreen decision and you could have the money in your bank within hours or the next business day.<\/span><\/p>\n \u00a0Bottom Line:<\/span><\/p>\n Starting a new business is exciting and takes a lot of prep-work in terms of knowing costs and how you’re going to fund it. Look at all your options. Find the best fit for your vision or dreams. Avoid funding options that won’t put you in financial straights and\/or give you the amount of control you want in your business.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" It\u2019s exciting to start your own business. It can also be overwhelming, especially when figuring out how to pay for it.\u00a0 So, if you\u2019re wondering How Will I Fund My…<\/p>\n","protected":false},"author":6,"featured_media":3814,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"_wp_page_template":null,"_nectar_full_screen_rows":null,"_nectar_full_screen_rows_animation":null,"_nectar_full_screen_rows_animation_speed":null,"_nectar_full_screen_rows_overall_bg_color":null,"_nectar_full_screen_rows_anchors":null,"_nectar_full_screen_rows_mobile_disable":null,"_nectar_full_screen_rows_row_bg_animation":null,"_nectar_full_screen_rows_dot_navigation":null,"_nectar_full_screen_rows_content_overflow":null,"_nectar_full_screen_rows_footer":null,"_nectar_slider_bg_type":null,"_nectar_canvas_shapes":null,"_nectar_media_upload_webm":null,"_nectar_media_upload_mp4":null,"_nectar_media_upload_ogv":null,"_nectar_slider_preview_image":null,"_nectar_header_box_roll":null,"_nectar_header_fullscreen":null,"_nectar_header_title":null,"_nectar_header_subtitle":null,"_nectar_page_header_text-effect":null,"_nectar_particle_rotation_timing":null,"_nectar_particle_disable_explosion":null,"_nectar_page_header_alignment":null,"_nectar_page_header_alignment_v":null,"_nectar_header_bg_overlay_color":null,"_menu_item_type":null,"_menu_item_menu_item_parent":null,"_menu_item_object_id":null,"_menu_item_object":null,"_menu_item_target":null,"_menu_item_classes":null,"_menu_item_xfn":null,"_menu_item_url":null,"_seedprod_page":null,"_seedprod_page_uuid":null,"_wp_attached_file":null,"_wp_attachment_metadata":null,"_disable_transparent_header":null,"_force_transparent_header":null,"_force_transparent_header_color":null,"_wp_attachment_image_alt":null,"_wp_attachment_context":null,"_dp_original":null,"_oembed_b671cea3ffd88f74c8894132f7fa1f9b":null,"_oembed_time_b671cea3ffd88f74c8894132f7fa1f9b":null,"menu-item-nectar-button-style":null,"nectar_blog_post_view_count":"87","_thumbnail_id":"3814","_nectar_gallery_slider":"off","_nectar_quote_author":"","_nectar_quote":"","_nectar_link":"","_nectar_video_m4v":"","_nectar_video_ogv":"","_nectar_video_poster":"","_nectar_video_embed":"","_nectar_audio_mp3":"","_nectar_audio_ogg":"","_wp_attachment_backup_sizes":null,"_nectar_love":"0","_yoast_wpseo_primary_category":"5","_wp_desired_post_slug":null,"_oembed_b81eb10df4b9a62550f2235e2ad83b17":null,"_oembed_time_b81eb10df4b9a62550f2235e2ad83b17":null,"_oembed_1d85139f12f35f82531738c97a5a6d45":null,"_oembed_time_1d85139f12f35f82531738c97a5a6d45":null,"_oembed_5b8d3dc6d4cd3f6d2b79a592b4eb8ee5":null,"_oembed_time_5b8d3dc6d4cd3f6d2b79a592b4eb8ee5":null,"_oembed_f6d69c2897c76845c62a5aad73a86f70":null,"_oembed_time_f6d69c2897c76845c62a5aad73a86f70":null,"_oembed_bb4771d8649efa63f6761274d3af5bfc":null,"_oembed_time_bb4771d8649efa63f6761274d3af5bfc":null,"_oembed_18c6e1c3f75c1de9e22bdde90ccf6891":null,"_oembed_time_18c6e1c3f75c1de9e22bdde90ccf6891":null,"_oembed_20662c1a8c5c7c25f04ac5a842a0716e":null,"_oembed_time_20662c1a8c5c7c25f04ac5a842a0716e":null,"_oembed_a563b557bea91623c0e6a95b4544c0b6":null,"_oembed_time_a563b557bea91623c0e6a95b4544c0b6":null,"_oembed_c4df30673d8883e4cf961727b5888df6":null,"_oembed_time_c4df30673d8883e4cf961727b5888df6":null,"_oembed_00f8c0e3fa168d4090f59309e426bae5":null,"_oembed_time_00f8c0e3fa168d4090f59309e426bae5":null,"_oembed_41a2874b40fcfda6c7d568575f981265":null,"_oembed_time_41a2874b40fcfda6c7d568575f981265":null,"_oembed_73d263c98764c393c2cf00995a0be08b":null,"_oembed_time_73d263c98764c393c2cf00995a0be08b":null,"_oembed_4bfd470612d7700fd2760226874632da":null,"_oembed_time_4bfd470612d7700fd2760226874632da":null,"_oembed_488a67d549bb68446a5ff0b8df634e7b":null,"_oembed_847cb2019b04649a2319616405f57013":null,"_oembed_c8c84b65b2b4a6416e4e6fff430ae702":null,"_oembed_ebd669b12d47ef3973ddc2323e51003b":null,"_oembed_7d435d5a17f0862629ce30c2fb93919c":null,"_oembed_240baaee28a2e1bee06091faff0455ee":null,"_oembed_bd9a2391b4e51f51239a17eefbaf6e0c":null,"_oembed_0db1a271f8659e877a43b68509600c48":null,"_oembed_7d54086b3155f19ae924488e063c4464":null,"_oembed_aeecf9ae9e3ffd537ade22695c3446d0":null,"_oembed_e575b5966e4dae684d5b12954eabe9d5":null,"_oembed_e7c09c26285f44b85f4b55bd46d50cd5":null,"_oembed_488ff26359b4eb82506efddb50bd7a19":null,"nectar_image_gal_url":null,"nectar_image_gal_masonry_sizing":null,"nectar_particle_shape_bg_color":null,"nectar_particle_shape_color":null,"nectar_particle_shape_color_mapping":null,"nectar_particle_shape_color_alpha":null,"nectar_particle_shape_density":null,"nectar_particle_max_particle_size":null,"_oembed_bf6ee96b5585d638063580d6778d905a":null,"_oembed_8eeef4df2576fc70c8d771f8f906a1b1":null,"_oembed_7b33c864bf3c3af21559fc8c9cdc007a":null,"_oembed_time_7b33c864bf3c3af21559fc8c9cdc007a":null,"_oembed_f601afd927f82912b8ba4642235deb5a":null,"_oembed_time_f601afd927f82912b8ba4642235deb5a":null,"_oembed_e23747ee6357e32db917aaa532b2d53e":null,"_oembed_time_e23747ee6357e32db917aaa532b2d53e":null,"_oembed_ce1a353c6557866e606ae78ba8756ed5":null,"_oembed_time_ce1a353c6557866e606ae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%%page%% | %%sitename%%","_yoast_wpseo_metadesc":"How Will I Fund My Business? There are 3 main options for funding your startup Let Funding Zest get you the best rates and terms.","_wp_old_date":null,"_wp_old_slug":null,"_yoast_wpseo_focuskw":"How Will I Fund My Business?","_yoast_wpseo_linkdex":"81","_oembed_ead57909f7baa016c3d54846ce0a6eb5":null,"_oembed_time_ead57909f7baa016c3d54846ce0a6eb5":null,"_yoast_wpseo_focuskeywords":"[]","_yoast_wpseo_keywordsynonyms":"[\"\"]","_yoast_post_redirect_info":null,"_yoast_wpseo_wordproof_timestamp":null,"_yoast_indexnow_last_ping":null,"yoast_head":"\nKey Factors Funding New Businesses:<\/strong><\/h3>\n
\n
\u00a0<\/b><\/h5>\n
Getting New Business Funding<\/h2>\n
\n
3 Main Ways to Fund Your Business<\/span><\/h2>\n
Options for Funding your New Enterprise<\/span><\/h2>\n
You Could Self-Fund Your Start-up<\/span><\/h3>\n
Find Yourself an Investor or Partner<\/span><\/h3>\n
How to Find and Work With Venture Capital Funding<\/span><\/h2>\n
\n
\n
\n
\n
\n
Crowdfunding for Your New Venture<\/span><\/h2>\n
<\/h2>\n
How Can a Small Business Loans Work for Me?<\/span><\/h2>\n