FINANCIAL PLANNING & FUNDING: Lesson 1
Funding Options for Existing/Established Businesses
Lynn Chestnut, from the Small Business Development Center in Chattanooga, discusses funding options for established businesses.
Topics:
- Criteria
- Types of Funding
Test Your Knowledge
To receive credit for taking this course through TSBDC, watch the video and take the quiz that will appear below to demonstrate your knowledge.
Video Lesson Topics
- 0:25
- Criteria
An existing or established business is an entity operating for 2-3 years. Any younger than that is considered a startup. This will change how to bank will see you.
It is crucial to establish a relationship with a financial institution, so they can better understand and provide help for your needs. In addition, take time to discuss with consultants or financial advisors what your needs are. This will help them guide you in the right direction.
- 1:48
- Types of Funding
- Bootstrapping is self-funding for your needs. The advantage to this is that you are not paying someone for their services and can reduce debt. The disadvantage is that it can extinguish all of your capital when you are in need of working capital.
- Crowdfunding. This can be from family, friends, and others who would be interested in funding your business. Ensure you are using a reputable crowdfunding site. You also need to ensure you are putting together a compelling argument on why they should support you.
- Traditional funding. This could be through your bank, credit union, or a certified development company that could help put the financing together for you.
- Angel funders or venture capital. Angel funders and venture capitalists generally like businesses that are high in growth. They like to see a 5-year plan, fund the project, and then have an endpoint. Not every business fits this criteria, however. In addition, you also might have to give up a portion of your equity for a period of time. It is crucial to discuss this with a financial advisory or lawyer about this topic.
Topics & Lessons
Each Below Topic Contains a Video Lesson and Helpful Downloadable Information
Funding Options for Existing/Established Businesses
Loans
How to Prepare for Your First Bank Meeting
How Much do I Need to Start my Business?
Developing Financial Projections
Break-Even Analysis
Accepting Payments and Credit Card Processing
Funding Options for Starting Your Business
FinTech Loans
SBA 7A Small Business Loan Program
Want to learn more about how this topic relates to your business?
Schedule a meeting with one of our consultants! All counseling sessions offered by the TSBDC are no-cost and provided by our staff of professional business consultants.
