Raising Capital for your Business » Presentation Geeks | #powerpointdesigners

“There are two types of people who will tell you that you cannot make a difference in this world: those who are afraid to try and those who are afraid you will succeed.”
– Ray Goforth

Government grants and subsidies

Government agencies provide financing such as grants and subsidies. While many are available, getting grants can be tough. There is competition and criteria for the awards that you and your small business must fall into.

You will also need a detailed project plan and a clear explanation of why you need funding. This should be no challenge to entrepreneur. The only major pitfalls is that people often do not read the location eligibility of their grant or prove why they need the funding compared to others. If you make sure you fit the eligibility criteria and clearly spell out a need, you have a better change. You also have to prove that you can match funds eventually with some subsidies so read the fine print.

“Don’t let the fear of losing be greater than the excitement of winning.”
– Robert Kiyosaki

Bank loans or SBA loans

Bank loans are the most commonly used source of funding or debt capital for small and medium-sized businesses. Consider the fact that all banks offer different advantages, whether it’s personalized service or customized repayment. You will need good credit and a good business plan on this route.

Small business loans are commonly loaned through the bank if you ask them what your options are for small business loans. Small business owners often rely on these business loans when they cannot secure personal financing.

A small business loan is a great way to start capital raising and building credit for your business. It can be risky to pay off a business loan if you cannot generate income in the onset of your business, so you may want to consider another form of capital raising if this is the case for your business. (You wouldn’t want too many interest payments!)

“People who succeed have momentum. The more they succeed, the more they want to succeed, and the more they find a way to succeed. Similarly, when someone is failing, the tendency is to get on a downward spiral that can even become a self-fulfilling prophecy.”
– Tony Robbins

Debt Financing

Debt financing is funding by means of debt capital happens when a company borrows money and agrees to pay it back to the lender at a later date. Debt financing occurs when a firm sells fixed income products, such as bonds, bills, or notes.

Loans and bonds are what larger companies use and smaller businesses sometimes even use business credit cards as well. (It may work if the card has a 0% APR for a certain period of time!)

“If you really look closely, most overnight successes took a long time.”
– Steve Jobs

Crowdfunding

While this requires a bit of marketing, if you have a good idea, you could crowdfund through the general public. Especially if you operate a niche sector, and you bring something innovative, this could be a great avenue if you have time to market your idea.

There are plenty of crowdfunding sites there available for use and are quite easy to use. Read the fine print and see how much they want from your total or each transaction as that can eat away at your capital.

Crowdfunding sites require some knowledge of the audience you’ll be pitching to. You also will have to incentivize their investment by rewards or future products. This may not be the greatest for say a business that is looking for time to research processes, but excellent for a company with a new product or patient coming to market.

“There are no secrets to success. It is the result of preparation, hard work, and learning from failure.”
– Colin Powell

Equity Capital or Equity Financing

Equity capital or equity financing is generated through the sale of shares of company stock. Equity financing is particularly useful for those who require funds to invest in their growth.

The one upside is with equity financing, there is no loan to repay. The business doesn’t have to make a monthly loan payment. This is useful if your incubation phase does not turn a profit immediately.

When working with stocks or partners, the business must give them a percentage of ownership in the company—which may also include some decision-making control.