Just as important as taking care of your business licensing and incorporating in Maine, it’s finding the right funding to kickstart your business. Without sufficient capital for your startup, there is no way that it can take off from the business idea you’ve been wanting to realize into an actual venture.
Financing a business in Maine can be quite tricky and time consuming, but it should be done with caution because your business depends on it. Although there are many options to financing your business, one that can fully support your business’ requirements while giving you the least risk will likely be your best choice.
In this short roundup I’ll introduce you to the top 5 resources to finance a business in Maine along with the information you need to get started.
Quick Note: Every potential investor or lender who is interested in your venture needs concrete proof that she/he will be making a good investment with your business. As an entrepreneur, a business plan best communicates this to your investor. If you haven’t written a business plan yet, use a template from your local SBA or use a business plan software.
There are key points to observe in finding the right option on how to finance a business in Maine. As a startup, you should know these key points to help you find the right funding to get on your feet. This Startup Savant guide gets you started on the right path to getting the capital to start up your business by providing you with 10 financing options and its pros and cons.
From here, you will be presented with other viable financing options other than the common government loan programs and bank loans.
Small business grants in Maine are a great financial resource when you’re starting a business. There is an assortment of grants available for small enterprise startup entrepreneurs to apply for, including grants for women, veterans, minorities, etc.
To qualify for small business grants, a grant criteria is set by each grantor along with the specifics of the grant. You can track available small business grants through Maine’s Grantwatch.
Startup incubators in Maine provide comprehensive startup resources for small businesses including connecting you to the right people or organizations to help finance your business.
Basically, a startup incubator offers various entrepreneurial services most notably office space and managerial training for your startup at the same time providing you with expert business counseling and networking opportunities to help you grow as a business. This financing option is as good as any that you might want to consider this. For more information on startup incubators, check this guide.
Basically, angel investing works just like any other financing option but the only difference is that angel investors are really capitalized on helping a startup entrepreneur get started on their business.
Provided that the startup entrepreneur exhibit commitment and hard work towards their venture, and he can present a solid business plan that proves the viability of his business, the angel investor will be willing to take more risks than the usual investor.
For angel investors in Maine, the Maine Angels organization is a good place to start looking.
While it may be a relatively new way of finding capital, crowdfunding to finance a business has long been practiced. It only became widely popular because the Web has provided the perfect platform to gather the crowd and the entrepreneur.
With various crowdfunding platforms available now, startup entrepreneurs are able to present their business idea along with the estimated capital needed, and the crowd pitches in any amount to reach that capital in exchange for a small equity. You can check Indiegogo, a crowdfunding platform, to get a feel whether this option is viable for you.
Funding a business is complicated, but what’s in store for you and your new business will all be worth it when you find the right financing option. Just remember to be savvy and have patience.
You want to choose the options that will be the best fit for your business long term.