2 Small Business Funding Tips From The Pros

Need money for your small business? Go ahead and apply.

Right?

Wrong! Thousands are denied small business funding because they fall into the category of the “un-fundable” for a few reasons.

So really you have two options here. You can try it on your own (to get small business funding), or you can learn from the pros.

Here are 2 Small Business Funding Tips From Professionals who deal with funding day after day.

2 Small Business Funding Tips

Small Business Funding Tip #1: Research and know your stuff before you apply

Knowing your stuff and doing the pre-funding application research is alleyways recommend. Reality is, when it comes to running a small business anything that you, you need to know your stuff and do your research. So what are we talking about here? What do the “professionals” know. What do you research and what do you need to know to successfully obtain funding for your small business.

The secret tip is not so secret. It’s very simple actually. Before you apply for any funding for your small business you have to know the following:

• Know your business inside and out
• Know who your customer and competitors are
• Know how much money you need
• Know how that money can benefit your small business
• Know how much money you need minimum
• Know how you can go-on without the money (what is your backup plan)
• How do you intend on paying the money back if needed

Knowing the answers to the above questions will prepare you for the funding application. Knowing your business and having all the answers (or at least truing to answer them) will put in you in the position of a serious entrepreneur in the eyes of any potential investor.

Small Business Funding Tip #2: Break up your needs and consider multiple funding sources

If you follow our business blog, we regularly mention that when applying for small business funding, be it government, private or personal funding, you need to consider all options and know how to correctly manage your funding needs.

The experts/professionals also agree. When looking at successful entrepreneurs who were able to obtain funding, most of them got funding from multiple sources, rather than just one.

If you are in serious need of let’s say $100,000 to expand your small business it may be a lot easier to borrow $5,000 from family and friends, $20,000 from a bank loan, $25,000 from personal savings, $30,000 from private investors, $10,000 from a government grant and $10,000 from a government loan, then all in one place.

It is messy, but more likely to obtain funding then if you were to ask for funding just from one source.

This way, the potential investors are accepting less risk lending you the money and in return you have multiple sources of funding (more connections for the future).

Let us know what you think about the 2 funding tips for small business owners that the professionals use.