6 DIFFERENT WAYS TO GET FUNDING FOR A STARTUP BUSINESS
Funding
When it comes to funding, there is not a one size fits all approach. There are three things you need to look at.
1. What type of funding you need
2.What kind of business do you have
3. The amount of money you need
Here is a list
1. 401( K)- A 401 (k) is a retirement savings plan sponsored by an employer. Create a C Corporation, Create a 401 ( k) plan that is tied to the C Corporation, Roll over the retirement funds into the new 401 (k) plan, use the money to buy shares in the business.
2. Microloans- What is a micro lending business? Microloans are small loans that are issued by individuals rather than banks are credit unions. Microloans can be used for working capital, inventory, supplies,and equipment.
3. Friends and Family- You can ask your family and friends and see will they invest some money in your business and you will pay them back after the business start bringing in revenue.
4. Personal savings- Be careful not to get caught up in the legends that used there saving to fund there business. Using your personal savings is apart of the Entrepreneurial process.
5. Equity Investors-Who are equity investors? They are individuals that buy and holding of stocks and stock on the stock market. Most investors will provide capital for you, but they will take ownership of your company.
6. Business Credit- You have to make sure you have a Duns number for some. Some will use you EIN ( Employer Identification Number) number and not pull your personal credit. Some company you should look into are Bank of America, Auto-zone, Office Depot, Best buy, Fleet Card.
If you are stuck for ideas, or need money quickly, turn to your connections. Think of joining industry specific groups. Go to meetings like meetup.com. Check out your local Small Business Administration, grants from the Federal Government, U.S Department of Agriculture.
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