5 Creative Tips for Business Owners to Obtain Financing

Capital is the crucial ingredient for any business topay yourself then pay for directly. You can barter
grow. This holds true whether you are afor advertising, travel, legal or accounting services,
one-person firm with minimal revenue or atelevisions, landscaping, cleaning services...
100-person company with significant sales. Yet so· Find a strategic investor. Is there a
many entrepreneurs and business ownerslarger company that would benefit directly from
complain about how difficult it is to attain. Hereyour service or product offering? If so, contact
are just five of the numerous ways to accessthem. If you can convince them that your
capital taken from the informative new book,company can directly or indirectly positively
Solving the Capital Equation. Use these ideas toimpact their bottom line either through a sales
spark your creative thought process and get theincrease or a cost reduction, you are likely to
money you need to elevate your business.garner financing in the form of direct equity, a
· Form strategic partnerships. Considerloan, use of their credit, prepaid contracts, or
the following: Who is already reaching your clientpayment of development costs. Look around.
or customer base? Who offers products orPotential strategic investors abound.
services that may be a great fit for your client or· Tap your suppliers. Are you trying to
customer base? Who has a skill set or functionalrapidly expand your business and need money to
expertise that your firm lacks? All of thesepay your suppliers? Why not ask your supplier to
entities would make great prospective partners.advance you the money? If your expansion will
Identify them, then craft a win/win partnership.contribute a sizable portion of your supplier's
Why spend money you do not have when youannual receipts, you can induce the vendor to
have something else of value to offer them -provide a 12-18 month loan by promoting how he
your firm's product and services! You can useshe stands to benefit. At the least, negotiate a
partners to access the sales force, marketing, IT,90-day payment arrangement.
accounting, management expertise - to name just· Seller finance. Who knows the business
a few - of the services you would otherwiseor asset better than the person or entity selling
have to pay for.it? If you are growing your business through
· Barter. As a business owner, you haveacquiring other businesses, seek seller financing.
a product or service that someone wants.Give them a lien against the business so they get
Otherwise you wouldn't be in business. You canthe business back if you default. Suggest it as a
barter these products or services for thoseway for you to know you are getting what you
products and services you need to grow yourpaid for. Added benefit: reduces risks that the
business or service your customer. Or you couldcompany has hidden problems which greatly
barter for personal items that you would typicallydecrease its value and that the owner would start
have to withdraw funds from the company toanother competing business.