“Where do I get the money to start my business?” is perhaps the most common question entrepreneurs ask.
However, we believe entrepreneurs should really be asking, “What is the best kind of funding for my business?”
There’s no one-size-fits-all solution when it comes to getting funding for your small business. There are many sources, varying amounts, and of course you must ensure the funding you have your eye on is actually suitable for your small business.
Here are a few things that you should keep in mind when you’re working on your small business funding plan:
- Stage of the venture process – Are you in start-up? A growth phase? Maturity?
- Your business’ achievements and financial performance
- The state of your industry
- The type of technology your business is based on, if applicable
- The growth potential of your business
- Amount of money you need
- What your company is worth
- Number of years before an exit strategy is available for investors
- Investors’ required rate of return on their money
- Your investors’ terms and conditions
- Your goals for your company