Money, greenbacks, capital, moolah, or dough…whatever you want to call it…everyone knows you have to have it to start a business. However, what’s not always clear is where to get it. Most new businesses, and even some established ones, have to resort to creative methods of raising capital. So, don’t let the pursuit of funding stop your pursuit of business ownership.
If you’re in decent financial shape with no debt or very little debt beyond a mortgage, you have a variety of options for funding your startup. Kerry Hannon, contributing writer for Forbes, compiled a list of financial resources to help get you started.
- Personal savings: The truth is most startups are funded with personal savings. Before you make a big withdrawal, make sure you have at least a year’s worth of fixed living expenses (like your mortgage and insurance needs) set aside. When you’re starting your own business, you may have to forgo a salary for a few months or even a year until income starts flowing.
- Friends and family: If you go this route, be clear about the terms and put everything in writing to protect the relationship. Friends and family are a great resource and are likely to support the people in their circle.
- Banks and credit unions: Banks are selective when it comes to small business lending. You will need a firm business plan and a clean credit report to get approved. It’s a good idea to seek out a bank that offers Small Business Administration (SBA)-guaranteed loans. SBA-guaranteed bank loans tend to demand a lower down payment, and monthly payments may be more manageable.
- Angel investors and venture capital firms: Getting financing from this type of funding can be tricky but if you have a great idea and terrific business plan, these types of investors will back you in exchange for equity or partial ownership. If this route interests you, check out the SBA’s Small Business Investment Company Program.
Small businesses are the backbone of the economy and My Annapolis Office would like to help your business join the ranks of other successful start-ups. My Annapolis Office is Annapolis’ premier workspace provider with an office space solution that will fit any size budget. Our fully-furnished Annapolis office space and virtual office solutions give you the space and place to work on your own terms while our administrative support staff provides personalized phone answering, mail and package receipt service, and professional reception services. With our prestigious business center, access to meeting rooms, and distinguished mailing address, we can take your business to the next level and provide the notoriety it needs for success at a price you can’t resist.
To learn more, call 410-656-1600 or visit us on the web at MyAnnapolisOffice.com.