By Vanessa Wagner, Small Business and Entrepreneurship Manager
Every business needs capital to start and grow, but not all capital or funding streams are created equal. Find out what various lending partners can offer you at our free event “Access to Capital for Small Business” on June 15 in Ashburn.
Sources and types of capital are changing. Tech-enabled platforms are generating new opportunities that entrepreneurs previously did not have access to. With the changing resources for funding a business’s growth, it’s important for entrepreneurs to understand the available opportunities to access capital, and which type is best for their short and long-term growth.
Here are some things you’ll need to do when you start seeking outside capital.
1. Estimate the amount of funding that you will need: how much and what will it be used for? Coaches at your local Small Business Development Center can help estimate your financial needs for both startup and expansion. Plus, the U.S. Small Business Administration offers some tips on estimating startup costs.
2. Get Information about various types of funding. Keon Lindsey with Complete Business Capital provided this chart to help business owners understand the criteria and utility of several funds.
3. Put together a loan proposal. Include how and when the lender will be repaid. Visit the Plan Your Business Section for templates and resources to help you build your proposal.
It’s also important that you’re comfortable with the lending organization you’re going to use. Get to know some of them at our “Access to Capital for Small Business” event on June 15.