Starting a Small Business: Your Financing Options
 
Starting a Small Business: Your Financing Options

Many consider starting their own small business to be the all-American dream. After all, who wouldn't want to be their own boss and be in control of how much they earn. Although many people want to start their own business, very few get the opportunity to do so. One of the many holdups involves financing. If you want to start a small business, but do not have the needed financial resources on hand, you may wonder what your options are. So, what are they?

Before highlighting a few of your small business financing options, it is important to focus on grants. Due to many late night infomercials and other highly advertised products, many Americans mistakenly believe it is easy to get free money to start a business. This free money supposedly comes from government grants. Grants are available to small business owners, but they are typically handled in the private sector. Government grants for small businesses are rare. They are typically reserved for state, county and local governments, schools, non-profit organizations, colleges and universities. You can and should still look, but don't be surprised if you don't see any grants available to help you start your small business.

Although it is rare to find grants to help individuals start small businesses, there are grants available for those who wish to improve or expand. However, these grants are not like loans, where you can use the money as you see fit. For example, as of February 2009, small business could apply for grants on Grants.gov that focus on youth violence, improving health in the workplace or community, monitoring the health and behavior change in individuals with disabilities and so forth. If you are an established small business owner, you may qualify for some of these grants; however, the money must be used as agreed upon.

Another method of seeking financing for a small business is to find investors. This can be tricky for those just getting started. Unless you have experience starting or managing a business, you are seen as a risk. Most investors are unwilling to take the chance. If your business is profitable, they recoup their money and then some in a few years. Should your business plan fail and you see losses or close down, the investors lose money.

Since relying on investors is hit or miss, the best option is to acquire a small business loan. These loans are easy to obtain for those with good personal credit and those with a clear, solid business plan. Before approaching any financial institution for a small business loan, have a business plan proposal. You need to show financial lenders that you not only have a good idea, but the knowledge, experience, and determination to run a profitable business.

When looking to acquire a small business loan, start locally. If you do business with a local bank, speak to a local loan officer. These banks want to give other businesses in the community a chance to grown and shine. It looks good for their image. It is an added bonus if you have been a long-term customer as you are more likely to get an approval. With that said, if you are denied, ask for reasons. If your bank thinks your business plan is good, but does not see this as the best time to provide a small business loan, head to SBA.gov. This is the Small Business Association. They have an extensive loan program and experienced officers that can help you find and apply for the correct loan.

As you likely already know, starting a small business is not an easy process. It requires money, hard work, trial and error, drive and determination. For most, the hardest part is obtaining the needed financing. Those wishing to start a business should avoid wasting time with government grants. Remember, they are rarely available for startup businesses and usually reserved only for business expansions, women, or minorities.

PPPPP

Word Count 655

Search
Recommended Resources
5 Easy Ways to Avoid Government Grant Scams Do you want free money? Of course, we all do. For some ...
read more

5 Reasons to Use Grants.gov to Find Government Grants Are you an individual looking for free money to assist you ...
read more

Applying for Government Grants: What You Need to Know Whether you are an individual, the owner of a small business, ...
read more

The Most Common Recipients of Government Grant Money You may have heard that the government gives out free money in ...
read more

Debt Relief Grants from the Government: Do They Exist? If you are like millions of other Americans, you may be ...
read more

How to Find Legitimate Government Grants in 8 Easy Steps Do you want to apply for a government grant? If ...
read more

Finding Government Grants: What You Need to Know Free money is something we all hope for. It is rare to ...
read more

Government Grant Scams: 5 Reasons Not to Fall Victim Have you seen an advertisement online or a late night infomercial ...
read more

Government Grants for Education If you are a parent, college is likely a concern of yours. Right now, the economy ...
read more

Government Grants for Individuals: Frequently Asked Questions If you are one of the millions of Americans in financial distress, you ...
read more

Government Grants for Senior Citizens In the United States, many Americans are in financial distress. Individuals of all ages are ...
read more

Government Grants: Save Your Money and Avoid Scams When many of us hear the phrase "government grants," free money often ...
read more

Government Grants that Benefit Parents Are you a parent? It is expensive to raise a child that is no secret. ...
read more

Government Grants to Start a Business: Do They Exist Do you want to start a small business? If so, you ...
read more

Grants Available for Small Business Owners Whether you want to start a small business or are already an established business ...
read more

Grants.Gov: What This Website Has to Offer If you want to research, find, and apply for government grants, there is ...
read more

Help Send Your Child to College with a Federal Pell Grant You may have heard that government grant scams are ...
read more

How to Find and Choose a Grant Proposal Writer Government grants are commonly compared to loans. Many claim the only ...
read more

How to Find Information on Government Grants Free money is available from the government. This free money comes in the ...
read more

How to Get Government Grant Money Government grants are available to a wide range of individuals and organizations. Whether you ...
read more

Starting a Small Business: Your Financing Options Many consider starting their own small business to be the all-American dream. After ...
read more

How to Talk to Local Non-Profit Organizations About Government Grants Non-profit organizations are one of the most common recipients of ...
read more

Tips for Hiring a Grant Writer Are you an individual, small business owner, or non-profit organization member who wants to ...
read more

What You Need to Know About Government Grant Scams Whether you are surfing the internet or watching television late at ...
read more

Who Qualifies for Government Grants You may have seen the late night infomercials claiming you can get free money from ...
read more

Main Menu
Home
Sitemap


website monitoring
Articles
5 Easy Ways to Avoid Government Grant Scams

5 Reasons to Use Grants

Applying for Government Grants: What You Need to Know

The Most Common Recipients of Government Grant Money

Debt Relief Grants from the Government: Do They Exist?

How to Find Legitimate Government Grants in 8 Easy Steps

Finding Government Grants: What You Need to Know

Government Grant Scams: 5 Reasons Not to Fall Victim

Government Grants for Education

Government Grants for Individuals: Frequently Asked Questions

Government Grants for Senior Citizens

Government Grants: Save Your Money and Avoid Scams

Government Grants that Benefit Parents

Government Grants to Start a Business: Do They Exist

Grants Available for Small Business Owners

Grants

Help Send Your Child to College with a Federal Pell Grant

How to Find and Choose a Grant Proposal Writer

How to Find Information on Government Grants

How to Get Government Grant Money

Starting a Small Business: Your Financing Options

How to Talk to Local Non-Profit Organizations About Government Grants

Tips for Hiring a Grant Writer

What You Need to Know About Government Grant Scams

Who Qualifies for Government Grants

 

Disclaimer: The Publisher has strived to be as accurate and complete as possible in the creation of this website, notwithstanding the fact that he does not warrant or represent at any time that the contents within are accurate due to the rapidly changing nature of the Internet.

This site is a common sense guide to Starting a Small Business: Your Financing Options. In practical advice websites, like anything else in life, there are no guarantees of income made. Readers are cautioned to reply on their own judgment about their individual circumstances to act accordingly.

This site is not intended for use as a source of legal, business, accounting or financial advice. All readers are advised to seek services of competent professionals in legal, business, accounting, and finance field.

Any perceived slights of specific people or organizations are unintentional.

Home| Sitemap|Budget Hosting

7.my © All Rights Reserved.