One of the most frequent questions I get as a mentor to entrepreneurs is “How do I find the money to start my business?” I always answer that there isn’t any magic, and contrary to the popular myth, nobody is waiting in the wings to throw money at you, just because you have a new and exciting business idea.
Entrepreneurs exploring options on funding a small business often turn to bank loans as an effective way for them to get initial capital to pay back once they have income flowing in. However, a recent report from The Wall Street Journal indicates that while there’s been slight growth in small business lending, the numbers are not very promising.
Every startup needs access to capital, whether for funding product development, for initial rollout efforts, acquiring inventory, or paying that first employee. Most entrepreneurs think first of bank loans as the primary source of money, only to find out that banks are really the least likely benefactors for startups. Thus “creative” really means maximizing non-bank financing.
As a small business, finding access to finance when you need it most can be very challenging and might seem impossible but there are alternatives to taking out bank loans or using your own personal funds to overcome a cash flow crisis.
Think of crowdsourcing as a kind of Internet dating approach to finding your small business the capital, creativity, help and ideas it needs to take it to the next level. And just as there been an explosion in Internet dating sights, there’s been a boom in crowdsourcing sites.
Thanks to technology and innovative thinking, the turn of the calendar each year brings some new or evolving trends with it when it comes to the small business landscape. For 2014 and beyond, here are some important small business trends of note.
By getting others to back a small business financially, the company will have a much better chance of being prosperous over the long haul. The good news is that there are several options aspiring entrepreneurs and established small business owners can use to attract others to a company for the purpose of helping to fund it.
Small Biz Club is the premier destination for small business owners and entrepreneurs. To succeed in business, you have to constantly learn about new things, evaluate what you’re doing, and look for ways to improve—that’s what we’re here to help you do.