When you haven’t established yourself as an entrepreneur yet, the task of financing a business in Connecticut may be a bit hard for you especially because you are a startup.
Add to that the fact that you have a lot on your plate, from incorporating in Connecticut to business licensing, you will really have your hands full. This guide will then help you by presenting five great resources to finance your business aside from the usual go-to options such as bank financing, credit card financing, or borrowing from family.
Quick Note: Investors willing to put up money for your business need proof of your business’ viability and want to see a sense of purpose and direction of your business. As a startup entrepreneur, you can show investors that your business is a good investment through a business plan.
Learning how to finance a business in Connecticut starts with the knowledge of the various financial options available for you. This allows you to make an informed decision as to what option is best for your business requirements.
Start learning on what options you can consider with Startup Savant’s guide to financing your business. In this guide, the various options, both common and the more unconventional ones, are presented along with a brief description of the options. Plus, some notes on why it can be a viable option for your business or not.
The state of Connecticut’s response for small business financing is quick and comprehensive with various options made available to startup entrepreneurs. This section of the Department of Economic and Community Development provides small business grants in Connecticut.
A number of resources complete with links are provided to cater to any financing requirement you need. From direct financing assistance to statewide lending partners and programs, it’s all there.
Business startup incubators are also another great option to finance a business. Startup incubators in Connecticut are geared towards helping and nurturing the development of small startups, so they can thrive in the cutthroat competition.
Incubators often help small businesses find the right funding through various possibilities for financing. In Connecticut, incubator organizations such as the Connecticut Business Incubator Network can provide you with the necessary funding assistance for your business.
Angel investors in Connecticut are individuals, mostly established businessmen and rich benefactors, who are willing to invest a good amount of money to jumpstart small business ventures in exchange for ownership equity. This Connecticut angel investor resource provides a list of investors to get you started with finding the right person to finance your business.
Know that before you can choose this angel investor option, you have to learn how to make a sales pitch of your business idea, because at the end of the day, these angel investors are still looking to earn profit from their investment. Be ready with your elevator pitch and your business plan!
A progressively popular business financing option is crowdfunding. As the name of this financing option implies, a crowd raises money enough for your business to get started. Crowdfunding platforms such as Kickstarter connect your business idea with the right crowd willing to pitch in some small contributions.
Crowdfunding to finance a business has also evolved with time where the startup entrepreneur offers tokens or small equity shares in exchange for the donation that the crowd gives.
Financing a business is a process that you have to tread lightly because it is such a crucial part of getting your business started. Not only does it take careful consideration, but you have to be the epitome of patience as well because it really can take time.
The best thing you can do is know your business inside out, know how much you’re going to need to start it, and take calculated risks.