When it comes to fueling business growth, many owners are uncertain about taking out loans or issuing equity. However, unfortunately, many times the business will begin to deteriorate without some kind of growth capital. Following are a few ways that you can obtain the capital you need to grow your business.
Typically, a business owner will not be able to get all of the capital they need from outside funding, so they end up having to use some of their own, personal funds- especially if there’s a new project they’d like to take on. One benefit is that it proves that you are confident in your business because if outside investors see that you’ve gone “all in”, they are more likely to join you.
Venture Capital Firms
A venture capital firm is an institution that invests in businesses in exchange for equity in the business. If you accept this type of funding, they are likely to request that one of their representatives sits on your board. This is a great option because you don’t have to worry about liabilities or repaying loans if your business does not make it. However, it also takes away some of your ownership.
This is another form of venture capital- but instead of being an institution, it’s individuals or groups of wealthy individuals who are seeking investment opportunities. Angel investors are also likely to want to sit on the board or give you advice for your business. Additionally, they are likely to have the connections you need to customers and/or suppliers to grow your business.
Debt is a very practical source of funds for growing your small business. There’s no worry about reducing your ownership of the company- and the bank won’t try to tell you how you can spend the funds they give you. However, the payments can cause difficulties with growth in the future.
If you need growth capital for your small business, contact 360 Commercial Capital and explain your situation. They will be happy to provide you with the options that will fit your needs best.