Got a Business Idea? 4 People you should talk to now to get your funding set up right

Most successful businesses start with a great idea. The next thing they need, though, is the right kind of funding. If you have a great business idea, you’ll want to talk to the following four professionals about how to get your business the right way.

Most successful businesses start with a great idea. The next thing they need, though, is the right kind of funding. If you have a great business idea, you’ll want to talk to the following four professionals about how to get your business the right way.

An Accountant

If you’re going to talk finance, it makes sense to start out by talking to an expert. Working with an accountant is an excellent way to make sure that your business idea can feasibly be supported by your finances. A good accountant won’t just tell you whether what you want to do is possible. They will help to guide you on the path to making sure that you are making reasonable financial decisions.

A Loan Officer

Your next stop should be a loan officer. Unless you are planning on bankrolling the entire operation with the cash you have on hand, you’re almost certainly going to need to take out a business loan. Talk to a loan officer about what the application process is like, what you should expect when you apply, and what kind of funding is likely for a business that’s similar to the one that you have dreamed up. You might be surprised by how much information you can get from a simple conversation.



Another Person in the Business

It’s also a good idea to talk to someone else who is running a business of a similar size or in an industry similar to your own. These are the people who have already dealt with the biggest roadblocks to funding and who know all the mistakes you can make. Many of them are more than happy to let you learn from the obstacles they have already overcome. Even sitting down for an hour with another business owner can teach you quite a bit about how funding works.

LinkedIn is a great place where to find people with relevant experience. A simple search for the profile you are interested in, write a small connection request and reach out to them. Once they reply, try to schedule a quick consultation. More often than not you will get a free consultation, and get all your questions answered

A Securities Law Attorney

Finally, make sure that you talk to a lawyer who is experienced in dealing with business financing. A solid securities law attorney will let you know the legal implications of your business plans and will help you to find ways to get where you need to go while still complying with various state and federal laws. A good lawyer will be an incredibly valuable asset as you put together your business.

Always make sure to reach out to professionals about topics like funding. A few conversations can help you to avoid major mistakes, so have them early. Once you know how your funding should be set up, you can start to build your business.



7 Expert tips for finding safe sources for business investment

If your business is already started, but you need investment money to take it to the next level, you also have a challenge.

Getting a business going is the dream of every entrepreneur. Unfortunately for some, finding safe sources of money can be the one thing keeping them from pursuing their dreams. Safe sources of funding not only help startups get going, but they can help them get over the five-year hump that takes out many small businesses.

If your business is already started, but you need investment money to take it to the next level, you also have a challenge. You might have to take on debt or give up a share of your business. When looking for money for a pre-existing business, the investors will take several factors into account, including the age and performance of the business. They will also want to know what your market is and the opportunities for growth.

These seven tips will help you find safe sources for business investments. It is best to find the perfect fit for your business and financial needs.

1. Review and revise your business plan

While writing a business plan isn’t a guarantee that your business will be successful, it does show potential investors that you actually have a plan. Before you turn to potential investors to ask for money, take a close look at your business plan to see if it is viable. Look closely at your startup plans and how you plan to keep the business going for the first five years.

Then, make changes that will entice an investor. Conduct research about your market and clearly show how you plan to take your small business and make it scale. Create a budget and show how you plan to function within its confines. Investors want to see how you plan to spend money to make money. Investors don’t want to give away capital, they want to make money off of it.

2. Use an online financial source

Some companies focus on investing in businesses. You can find more information at equifyfinancial.com. Investment websites like this are dedicated to helping businesses get the equipment they need so they can take their businesses to the next level. Equify Financial looks for reasons to invest in a business, while others look for reasons not to invest in a business.

3. Consider crowdfunding

If you have a product that will get the attention of the general public, you might consider crowdfunding. Of course, to get money from the crowd, you have to offer something to the crowd. If you entice the general public with rewards that they cannot resist, they will invest in your idea. As long as you eventually bring the product to the marketplace, this is a safe form of financing that has proven to help businesses find success.

Crowdfunding will quickly tell you if your idea will succeed. Crowdfunding websites can be geared toward investors or the general public. If neither group shows interest in your idea, then your idea probably won’t make money in the long run. Or, it might need a subtle tweak to make it an idea that people will consider supporting.

4. Find a strategic partner

Sometimes you just need a partner. When you work with a partner, you not only get a second brain to bounce ideas off of, but you also get a second wallet. With a strategic partner, you also reduce your personal liability, because both of you are on the hook for the business.

The problem with a strategic partner is that you do have to split everything, unless you decide to use a different partnership.

As the mergers and acquisitions experts mention here neumannassociates.com/white-plains-ny, if you do decide to find a partner, be sure you set everything up with a lawyer so that you can work through issues before they arise.

Often the best strategic partnership is where each partner brings something unique to the table. You might be the person who works with marketing, hiring, and sales. Your partner might be the person who works well with finances and accounting. If you’re both good at the same things, then the partnership might not be needed. Consider each other’s roles before you commit to sharing the business.

5. Turn to your local bank

If you have a relationship with your local bank, you can always go there to ask for an investment. Banks do have to follow protocol, so they might have to offer the investment in the form of a loan. Or, they might want a percentage of your business. Banks are generally safe sources for investments, but you have to play by their rules.

6. Try the SBA

The Small Business Administration provides loans to small businesses that need money to startup or to grow. They usually back loans from commercial banks. They also require the business owner provide a percentage of the capital for the project. To keep their interest rates low and their funds guaranteed, they require that businesses put up assets for security.

SBA loans are usually approved within a week, so they are a good source of quick funding, as long as the requirements are met. If you cannot get a loan through a local bank, look for a local bank that uses SBA money.

The SBA does have strict rules for repayment and default. In many cases, if you default on an SBA loan, you might need to try to restructure the loan. Otherwise, the federal government will put your business and you into collections.

7. Use your money

Another safe source for business investments is your own money. If your business has made profits, you should be able to reinvest the money into the business. If you are starting a new business, most lenders and investors will ask that you put some of your own money into the project. This shows investors that you believe in your idea and are willing to take some risk to get it going. If you are unwilling to take a risk with your own money, why should a complete stranger give you money?

Some people prefer to use a personal credit card as a safe source for business investment. Consider the interest rate before you use a credit card. If you do use a credit card, set up a payment plan so you do not accrue an excessive amount of interest.