Image Credit

Businesses need money. That’s a fact. Very few businesses sprung up overnight with no capital pushing them. So finding finance is the first thing you need to contend with as a business owner. Put dreams of skyscrapers and conference meetings out of your head for now. You need to focus on money, and how you’re going to get it.

Investors

These people should be your first port of call. It needs to be said though, they may not be able to fund the whole venue. Having a varied and diverse source of funding is the best way to ensure you get the amount you need without compromises.

Investors can be anybody who wants to put money into founding the company. In return, they get a stake in the business and a share of the profits. Some people invest purposefully to see a return. Some people invest as a hobby. Others will invest because they truly believe in you.

If you’re going to investors, you need to have a fully funded business plan. You need to say where the money will go, and how you’ll earn it back. You get investors by earning their trust. They need to be confident in you, and the business. Without this confidence, they won’t feel secure in giving you the funds you need.

Financing & Loans

If you didn’t convince the investors or just didn’t get enough money out of them, turn to establishments and companies for your money. Financing is a large part of business. Whether you’re moving offices or buying a franchise. Most businesses getting on their feet don’t pay for the things they need out of their pocket; they opt for asset finance to fund all manner of required items.

Like the investors, you’re going to have to show these finance institutions a business plan. Confidence is still key here, but you’re not dealing with an individual. You’re dealing with another business. They may be less skittish to invest as a result, but don’t for a second think you can cut corners. They will know.

Government Funding

This will only work in specific circumstances. More often than not, you won’t get any government subsidy or grants. Don’t pin your hopes on it.

The specific circumstances may well be related to the nature of the business and who you are employing. Government funding usually goes to businesses looking to improve local areas and services. It also goes to businesses who are looking to train young people, disabled people, any outliers who may be having trouble getting into the world of work.

If you want to be a big and productive company, this might not be for you.

Doing It Yourself

Sometimes desperate times call for desperate measures. If you have any assets and can afford to strip yourself of them, sell them off. It has to be said you should never sacrifice your personal life for the sake of the business. Do not sell your house unless you have somewhere permanent elsewhere to live.

Business financing isn’t easy. If you’ve got the plan for the future though, you can bring some people on as secure investors. All you need to do is think it through.