In the previous episode, Elise talked about the ways to expand your business and each of these ways requires resources. An alternative to expansion is simply just growing your business, which, similarly, still needs financing if you want to grow fast. Financing has an important role in making your business grow. The strategic use of financial instruments, such as loans and grants, is the key to success of every business. In this episode, Elise Walton gives you another game- changing strategy for your business.
Show notes:
1. Get a bank loan. Banks have funds for small business lending.
2. Use your credit card. This method is risky though so it needs to be used sparingly and wisely.
3. Crowdfunding. This facilitates the asking for and giving of support for projects. Usually, project creators offer incentives for the one pledging support.
4. Angel investor or group of investors. Angel investors prefer to fund companies with experienced and credible management team.
5. Tapping into your Retirement Plan. Based on long-standing provisions of the Internal Revenue Code, you can finance a new business or franchise by rolling your retirement money into your new business. You pay no income taxes or early withdrawal penalties, avoid debt and have money available immediately to rent a space, pay a franchise fee, hire employees, buy equipment and pay yourself a salary.
6. Securing an SBA loan. Your business may need to meet other criteria depending on the type of loan.
7. Raising money from friends and family. You will have to treat the money as a loan.
Resources:
Our resource center: www.gamechangeyourbiz.com
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