what are the typical sources of funding for early stage of start up business?
In my experience, funding to start a business came from personal savings as well as loans and cash injections from family.
If personal savings is not an option, a personal line of credit may be a good choice. Depending on the type of credit line you get, you could write-off the interest paid. Of course, small business loans and even grants are a possibility, too.
The type of business you are starting may dictate what funding route you take. I’ve started two businesses. One required much more capital than the other because it required obtaining a location, equipment, insurance, additional staff, etc. To fund this, we used savings as well as a personal line of credit. The other business was a home-based business that required very little capital because the location and equipment were not an issue.
Take a look at the Small Business Administration’s Website for more info and ideas (www.sba.gov.)
What sources of short-term funds would a new business owner be most likely to count on in trying to grow?
What sources of short-term funds would a new business owner be most likely to count on in trying to grow his or her business? What sources of long-term funds?
Depends on your business but personal credit and family are pretty much the only answer for cottage industry or home business types. If you have a business plan and you meet certain criteria you may qualify for an SBA loan. If its a huge idea get started making some money, build momentum, then look for private money.
Looking for sources to find business owners who need Equipment Financed for expansion/upcoming needs?
I am a broker with a small firm in Colorado and we finance business owners who need equipment- ranging from trucks to refrigerators to computers and office furniture. I am getting mixed results with cold calling- I’ve had some success but it’s tough hitting everyone at the right time. I have tried some other sources- mainly Craigslist- but it’s been tough to manage as you can only post there so much.
I know that there are thousands of businesses nationwide that would benefit from the banks and funding sources that we work with in the form of lower rates and service provided.
My question is-What is the best way to find a prospective customer without calling and writing and generally irritating every business owner in the U.S.? What are the best ways for me to find business owners that I know are looking for funding? Are there websites dedicated to people seeking financing, like Prosper? Any help is greatly appreciated.
Carla-it will be nearly impossible to find funding with low personal credit and being a startup.
You can try advertising in different publications.
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