You’re ready to raise some money for your business. Whom do you go to?
Here are the traditional answers:
Family and friends. This is the natural place to turn. But some people are reluctant to turn to family. Often those are the people who miss a golden opportunity. When you’re looking for money you have to explore all your options.
Banks. Don’t overlook the obvious. Banks are in the business of lending money. And if they won’t do it, they know people in the community who may be able to help you.
Insurance agents. Talk to your insurance agent. He or she is not the one who will come up with the money, but knows people who can help. The key to finding sources of financing is networking and insurance agents have plenty of contacts.
Business associations. What organizations do you belong to (or should you belong to) in your line of business. Here are more contacts you can use.
Venture capital firms. There are firms that specialize providing investment for your business.
Leasing. You can do it with your home and with your car. Why not lease your building or equipment rather than buying it out right. Then all you need to worry about is the monthly rental. And you can skip the mortgage.
Search the Web. We said that networking is key to finding sources of finance. Why not use the mother of all networks, the Internet. Start with these links and within an hour you’ll have a list that will keep you busy for a long time. Try the SBA (Small Business Administration) for assistance from the government, SCORE (Service Corps of Retired Executives) for help from folks who have spent a lifetime in business. Finally, check out Small & Home Based Business Links a compendium of links to different sources of financing.
