The idea is sound and the entrepreneur is ready to venture forward. Whether starting a new business or expanding an existing one, the Ohio business owner typically will need some form of financing along the way. Depending upon the business and the resources available to the business owner, there are several options available.
Perhaps the fastest way to obtain funding is through the individual’s personal resources. In some instances, personal savings or investment accounts can be accessed. Additionally, some prefer to use personal credit cards or lines of credit that may or may not be secured .
Banking institutions are also a traditional form of financing business startups or expansions. However, this route may be more difficult for a new business to obtain. Banks usually prefer to see a history of income produced by the business, but if the owner has a good business plan along with the personal collateral to secure the loan, the bank may be the best option.
For those businesses with exceptional growth potential, a venture capital firm or investment banking firm may be the appropriate source of financing. A venture capital firm will provide funding directly to a business that it views as having such growth potential. An investment banking firm, on the other hand, will offer stock in the company to the general public. This then gives these stock holders an ownership interest in the company.
At some point in time, each Ohio business will most likely need to seek some form of financing. There are numerous options available. By working with an experienced legal team, the business owner can review the various options and decide which is best suited to the current stage of the business.
Source: smallbusiness.findlaw.com, “Sources of Small Business Financing“, Accessed on June 5, 2017