Less than 50% of US SMEs have their financing needs met. As a business owner, you may need to raise funds to launch, or grow your business. Here’s some advice from Benjamin Naderi on how to grow your business finances in 2022.
Set up a business bank account and differentiate between your personal and business finances. When evaluating personal funds as a business route, take stock of your savings, cash, bonds, property, and any other notable assets to determine the best possible route for you.
Opening a business bank account with your bank may also help if you are considering a business loan. A business loan with your current bank may be the best route, as you are less likely to get declined, as long as you have a viable business plan and documentation to convince them of your company’s success.
Can you go into business with a partner? A partner can help you spread risk and also bring diverse skills to the table. There are different partnerships to consider, including silent, limited and joint partnerships. Consider whether you are prepared to share your business with another individual first.
Venture capital is when private investors put funding into startups and small businesses. They can provide financial, technical, or managerial expertise in exchange for a percentage of the business. You’ll need to convince investors your business has growth potential as part of the pitch.
Home equity loans allow homeowners to borrow against the current market value of their home, compared to the current mortgage payment due. You will need to carefully consider whether this is viable to you as you will still need to pay the loan back over time
Contact us today for advice on entrepreneurship and business funding. Benjamin Naderi and his expert team are on hand to help you take your business to exciting new heights.
If you do not have an idea yet, check out this article on how to develop and idea for your business.