Financing Is Available-

Finding the money to start a business can be extremely difficult. Most entrepreneurs start out with their own saving along with the three F’s. The three F’s are Friends, Family, and Fools. This is usually where the start-up funds come from for most small businesses. This is an okay start but there are even better ways to get financing.

Financing can come from a multitude of places. To name a few, banks, venture capitalists, angel investors, government programs, and even private companies. In a recent article I read, Accion had just begun a partnership with the Boston Beer Company, brewer of Samuel Adams beers, to help small food and beverage businesses get funding and free advice. There are resources available, just make sure you keep your eyes open.

The best place to start would be the Small Business Administration. They should be able to point you in the right direction. I have been told financing from banks can be rather difficult during these economic times. Venture capitalists will invest in your business if it is sound. Most venture capitalists will invest for a short period of time for a high return. You have to understand that this is a high-risk for investors.

Angel investing is a completely different story. Angel investors are usually in it for the long haul. Some are willing to be with you for 5 years while your company grows. The do have a high rate of return but most are not there just for the money. They are also there to give you advice. I had the luxury of speaking to an angel investor who worked locally in Reno at Sierra Angels. One great point that I liked is they will put your business plan into their database. This allows all other angel investment companies the ability to look it over. Some investing may not be from the people you present your plan to but from other organizations nationwide.

Financing can be just around the corner; the trick is knowing which corner to turn. Do your research on government grants or private companies. Ask around and involve that network that you have been building up!