Fund your business

It takes resources and money to start a business. Funding your business is one of the first and most important financial choices most business owners make. How you choose to fund your business could affect how you structure and run your business. The first step is determining how much funding you will need.  Every business has different needs, and no financial solution is one size fits all. Your personal financial situation and vision for your business will shape the financial future of your business. Once you know how much startup funding you’ll need, it’s time to figure out how you’ll get it. Some of the available funding avenues include self-funding, investors and loans.

Self-funding lets you leverage your own financial resources to support your business. Self-funding can come in the form of turning to family and friends for capital, using your savings accounts, or even tapping into your 401k.With self-funding, you retain complete control over the business but you also take on all the risk yourself.  

Another investment avenue is through investors that provide funding to start your business in the form of venture capital investments. Venture capital is normally offered in exchange for an ownership share and active role in the company. Venture capital differs from traditional financing by focusing on high-growth companies, invests capital in return for equity, rather than debt, takes higher risks in exchange for potential higher returns, and has a longer investment horizon than traditional financing.

Last but not least, you can also obtain a loan and there are two main ways to do so. Through a traditional business loan with a bank or a Small Business Administration loan. The latter is a loan from a private bank but is guaranteed by the SBA, that way the bank has less risk and is more willing to finance the business. In the end, whatever funding avenue you choose, make sure you have a thorough understanding of the intricacies of your business and how it operates.

Membership Hack: Have you thought of your business’s New Year’s resolution?

The holidays give many of us a break. It’s a time where we relax, refresh, and think about what the future holds for us. While this year has been full of obstacles and challenges, in order for us to keep our businesses open we must be proactive and have faith that 2021 will look and feel better than 2020.  Below are some ideas to keep in mind when creating a New Year’s resolution for your business.

Digitize, digitize, digitize

Perhaps your business is fully paperless, but many businesses still have opportunities to digitize their organization. does this mean exactly? At the very least, it means scanning your important paperwork and shredding materials that you do not require paper copies of (please check with your attorney and/or accountant for any documentation you must maintain paper copies of). Utilize a shared-drive where files can be stored. This makes remote work much easier and streamlines overall business processes. 

Update your security – physical and cyber

Most people understand physical security for their office, such as gates, security doors, alarms, and cameras, but do you understand cybersecurity? Partner with a third-party service provider who can manage and maintain your cybersecurity. Remember, even if you are operating “in the cloud,” you still need cybersecurity!

Assess your income stream and consider recurring income

Consider your business’s income stream. Is it steady? Unpredictable? Are their steps you could take to make your income more reliable and consistent? Monthly or quarterly subscription boxes with products or services might be something for you to consider. These boxes can provide reliable income from subscribers and it keeps your brand and products in front of your customers.

Utilize Search Engine Optimization (SEO)

Most people will use an online search engine to find a company or product, so make sure you are visible in cyberspace! You can capture qualified leads from SEO, and much like cybersecurity, there are third party companies out there that specialize in this.

We look forward to continue serving you in 2021!