Strategy #3 – 30 Essential Small Business Funding Strategies
Category: Business Advice, Business Planning, Funding & Financing
If you are just tuning in, we decided to give you the top 30 strategies that small business owners can use to obtain funding for their business. Last week we discussed the 2nd strategy, and if you missed it – view it here.
By now, we should know that having a well developed business plan is key to success and is one of the first steps to getting funded. From there we went onto learn that there are certain funding programs that are offered to startups where you can actually get paid while you try and plan, or launch your small business. So what’s next?
Funding Strategy #3: Ask yourself these 10 questions before you seek funding
If you are 100% serious about your small business startup, you should have no problem answering these 10 questions in hopes to get the best change to obtain funding.
Remember that these questions are typically the questions that will be asked by the funders (whether government agencies, banks or private investors).
- Why do you want the money? (Launch your business, grow your business…etc)
- What are you planning on using the money for? (Capital improvements, marketing, hiring, inventory…etc)
- How much of your own money are you investing into the business?
- How much money do you need?
- Do you need short-term or long-term funding?
- How and when do you plan on repaying the money? (if a loan)
- Do you have any security? (house, car…etc)
- How much of your security are you willing to put towards your venture?
- Why should I invest in you? (I meaning investor)
- Have you considered other potential sources, and why do you think this is the best one for you?
These are just the most common questions that we know of which potential investors will surely ask you. Be ready and be prepared to have the answers.
Also be sure to check out the 4th strategy to getting your small business funded later this week, where we will discuss many more available funding sources.
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