FINANCE: Small Business Financing

Some careers in finance will take you to large investment companies. But some of you may be more inclined to the individual picture. Did you know you have an uncle who can help finance a small business? Uncle Sam, the US government has a Small Business Administration office. They offer many services to educate the small business owner from preparing a business plan to learning how to qualify for government contracts.
When financing is needed for a small business the logical first step is to write a business plan. Even if an owner never shows the plan to anyone else it will help solidify and focus their ideas about the business. Items needed for a business plan will stimulate your brain into learning the reality of the situation and help prompt the answers.
As part of a financing package, a business plan will detail what the company intends to do to produce revenue. Most plans include at least a 3-5 year projection. The Small Business Administration lets you write a business plan on line that can later be reviewed by a mentor or counselor at the center.
More financing help comes from the Small Business Administration or SBA in the form of loans. They do not necessarily give you the cash themselves. They help a small business owner qualify for a loan from another lender. Help them find the appropriate lender. The SBA can also point the owner to venture capital. With many programs available just realize that pertinent qualifications will need to be met.
As a finance expert for a small business owner, you can get financing help and advice from the SBA but will not in all likelihood acquire out right cash. The government is funded by our tax dollars. Offering grants with these tax dollars would require strict compliance and reporting programs. Government grants often help non-profits and educational organizations because this in turn helps communities.
Financing through state and local governments may be available to small businesses. This is on a per state basis and usually requires matching funds. As the finance manager of a small business you can learn there are untapped avenues to explore.

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