Sierra Polk
Management Consultant
sierra.polk@communitiesu.org
Starting a small business with the goal to one day become a BIG business, is an incredible journey. One of the biggest challenges an entrepreneur can face, is connecting to the necessary funding to turn their idea into a steady income source. Whether you’re just getting started or looking to scale your existing venture, these funding avenues will help you understand options within the funding landscape.
For entrepreneurs, business capital can exist in 3 different ways:
Human
People, Processes and Structure
Financial
Assets, Liability and Equity
Social
Relationships, Cooperation, Networking and Platform
Let’s explore the types of financial capital, that help fuel and drive social/human capital areas.
For more please see the Arkansas Capital Scan
Bootstrapping
Self-Funded, documented personal savings investment or revenue from sales
-Minimize expenses
-Leverage partners & networks
-Stay focused & lean
-Determine own path
-Early sales revenue
-Transfer or invest personal savings
-Cash-out stock for investment
Grants & Subsidies
Funds that are not expected to be paid back provided by organizations
-Government
-Research & Industry eligible grants and funds
-Regular reporting requirements
Crowd Funding
Raising small amounts of capital from multiple people
-Reward, Equity or Donation based
-Builds community trust
-Increases Trust, Insight & Engagement
Corporate Partner
Partner funding from a well-established company
-Industry access
-Expert guidance
-Cost-sharing & Equity
-Credibility
-IP access
-Distro channels
Angel Investors
Provide capital and mentorship in exchange for company equity
-Idea Validation funding
-Credibility
-Expansion
-Industry events & programs
-Pitch competitions
Bank Loans
Funds for operations, business expansion and new projects
-Retain ownership & control
-Credit & Collateral
-Term & Guarantee based
-Flexible fund usage
Venture Capital
Investing capital in exchange for ownership equity
-Strategic guidance
-Due diligence
-Funding stages
-Venture debt
-Equity Dilution
Accessing funding for your small business is a crucial step towards achieving growth and realizing your entrepreneurial dreams. By understanding the different funding options such as traditional bank loans, SBA loans, crowdfunding, angel investors, venture capitalists, grants and more, will help with finding the right avenue to fuel your business success.
Be sure to carefully evaluate each option based on your unique industry needs, goals, and specific eligibility requirements. With determination, strategic planning, and a tailored funding strategy, you can gain access to the financial resources needed to scale your business and make your mark in the entrepreneurial ecosystem.
Our Entrepreneurship team holds no-charge webinars to help you unlock your potential as a small business owner. Sierra Polk, a business management consultant on the entrepreneurship team, hosted a webinar live via Zoom about funding strategies for startups. The event was held on Thursday, November 30, 2023 at 12p to close out Global Entrepreneurship month, which is where the information in this blog is stemming from.
Join us for future training webinars to help develop and education small business owners, empowering them with the knowledge and resources to fuel their entrepreneurial dreams.
If you would like to discuss ways to improve your business to take advantage of growth opportunities, improve profitability, or how you can more effectively generate wealth from your business, feel free to contact the Entrepreneurship Team. If you would like to schedule a no-cost, no-obligation consultation with one of our consultants, visit our Entrepreneurship Team page.
