Small business start ups almost always rely on successful funding ideas and most home businesses require funding at one time or another. What are the most successful ways to fund a small home business? Grants, loans and cash flow funding models are all ways a small business can get the required capital to make the changes it needs or get started in business, which is the best?
Small Business Loans
As of late successfully obtaining a small business loan has become increasingly difficult. Loans are a part of business, whether your buying a franchise or an online business, and an easy part they are no longer. The days of open pocket bankers seem to be over at least for a time and this leaves many small business start ups to look to more creative financing ideas for their start ups.
I’d strongly suggest working with a specialist in obtaining your small business loan, I’ve come across some unique SBA loan consultants via the Internet in the past few weeks while doing some research into successful small business funding opportunities.
Cash Flow Funding Ideas
I’d say better than 70% of entrepreneurs overlook one of the easiest ways to fund a small business start up and it’s something you have complete control over. Cash flow can fund a business start up better than a loan in many cases. The problem with this more creative financing idea is that initial growth may be slower. In my experience using customers money in the form of “money down” or a similar arrangement is not only a way to make you business more profitable, it’s also to hedge risk, big time. And over all your business will experience faster growth without the burden of debt anyway. Give it some thought.
Cash is king and profitability is Queen is a quote I used to like. The stuffs gotta move, so get the cash moving and find profitability in the stream later. This is good advice in my opinion, but then again it’s free, so whatever that is worth. On to the next successful funding idea.
Government grants are offered for different business industries and sectors from time to time. There are usually many types of government grants available to small business start ups and other community type endeavors.
The U.S. government and Canadiangovernment both use the grant system to distribute government funds to various areas and industries. Navigating the system to successfully recieve a grant can be difficult and there agencies to help with securing government grants you can use, it is said to greatly increase your chances of obtaining these funds.
Are there drawbacks to government grants?
Most all funding ideas are going to have pros’s and con’s, grants are no different. Here are some of the downsides to government grants.
There are grant programs for tourism, exporting, manufacturing, technology, research, publishing, arts and culture, retail and many other sectors, this short list is just a small sampling of Canadian government grants that you will likely find.
You can learn more about US Federal grants as they may be an option for successfully funding your small business. The US is notorious for using the government granting programs to stimulate the economic state of certain areas or the whole country, as of late. Grants are a way the governing bodies can bring about the change that is desire, both corrective change and creative change is instigated by certain grant programs, can you think of any?