How to Finance Your Small Business Venture | Money Chatter

Starting a small business? Then you have your work cut out for you. On top of developing a great business plan, you must also figure out how you are going to obtain the finances to bring that business plan to fruition. When it comes to financing your small business, you have several options (outside of begging your friends and family for money). Here are some suggestions for how to finance your small business venture:

Find a business partner. There are many people out there, with money, who are looking for great investments. If you have a solid business plan and don?t mind bringing someone else on board in your business, then it is a good idea to search for an investor who is willing to finance your small business expenses. Usually, this involves offering a percentage of your business income, or even giving the partner a share in the business. A great place to look for investing partners is on sites like Craigslist, and through investment clubs.

Take out a small business loan. Again, you will need a strong business plan for this option. Head into the bank you keep your business bank account with and ask your banker about business loans. Going through a bank to get a business loan may be one of the most difficult finance options to qualify for, but it may also be your most reliable funding source.

Use credit cards. Depending on your monetary needs, you may be able to finance your small business venture using credit cards. This is especially true if you are starting a business that requires extremely low overhead, and if you have credit card accounts that carry low interest rates. Just keep in mind that many credit cards carry high interest rates and fees, so you should be very choosy when deciding whether or not to use a particular credit card account to fund your small business.

Grants. It may be possible that your small business qualifies for grants, from either a government entity or a private organization. Visit your local library and ask about on-site grant research resources. Finding and applying for grants will cost you a considerable amount of time and effort, but the reward is that you are ?granted? with free money that you never have to pay back!

Refinance your home. If you own a home and have a considerable amount of equity in it, then perhaps the least expensive way you can finance your small business venture is to refinance and cash out on some of that equity. Rates are low these days, so a home equity loan or line of credit might be your best option.

As you can see, there are a lot of resources when it comes to financing your small business venture. Explore all of these avenues and decide which is best for you.

About the Author:?Elwood Formella is a small business owner who offers consulting to new entrepreneurs looking to start their own businesses. He helps them to find loans for small business ventures, office space, and more.

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