Business capital and following the steps to get small business funding is what the majority of small business owner lack whether in the start-up or expansion stage of their business cycle. The unanswered question still remains, what does it take to get your small business funded?

Some business experts will tell you a business plan should be your first step towards obtaining funding for your small business, are they right?

Others will tell you that you can’t obtain funding unless you are bringing money in? Is that right?

It really is tough to say who’s right and who’s wrong since there isn’t just one factor determining whether you are able to obtain funding or not. Look at it this way, a large business that is currently making over a million in revenue, is looking for a grant to expand – but they don’t qualify. On the other side of the country, a start-up hair boutique is looking for the same grant, and they are able to obtain it.

Was it luck, a business plan, high revenue or what?

Well let’s just say applying for funding and obtaining it, is a possibility, and here are steps to get your small business funded.

Steps To Get Small Business Funding

Step 1: Do prepare a business plan.

A business plan is always important as it paves the road for the future of your business. With a business plan you know where you are going and what you need to get there. It also is the perfect tool to show investors, banks or government funding agencies to obtain funding.

Step 2: Figure out what you need money for, how much and when.

Do you really need money, if so when do you need it by and for what? These are simple questions that can help save you hours upon hours of research and time wasted. Like with starting a business, you always conduct research. If you know what you need money for (such as purchasing of equipment), it narrows down your search as to where you need to go to obtain that money.

Step 3: Break it down.

If you are looking for a million bucks for a small business you might not get it. However, if you are looking for let’s say $100k for expansion, $75k for hiring staff, $200k for advertising and so on, there may be various agencies, banks or investors who may be willing to help get you funded one part at a time.

Step 4: Don’t give up.

If you apply for a bank loan, and you are denied it’s not over just yet. Many other options are still available for you. Try your local government. Did you know that the Canadian government hands out billions of dollars to small business owners each year? Giving up is easy, but applying again and trying over and over is what’s truly worth it.

Step 5: Wait a little.

Waiting seems like a negative when you really need money. However, a lot of small business owners when they are starting up apply for funding too fast and get denied. Waiting a little until you have a proven track record, a better established business and applying again may be the difference between obtaining money and not.

These five simple steps will not guarantee funding or that you will be swimming in money, but they will help you get started towards the right path to obtaining funding.