“Entrepreneurship is living a few years of your life like most people won’t, so that you can spend the rest of your life like most people can’t.” – Anonymous
Organizations need money to be able to buy assets, hire employees, and execute their plans. Depending on how they want to fund their business or non-profit determines the prep work they do. Businesses and non-profits who are looking for loans that they pay back will first need to create realistic financial projections and business plans. For this, they will get money up-front to buy assets or other items and will have loan payments which include principal and interest.
Other business owners prefer the options to sell part of the ownership of the business to bring in money. This money is then used to grow the value of the business quickly and is not paid back directly. However, the equity (business ownership) that investors take for their investment brings expectations of an increase in company value and a timeline for getting their money back (with a large increase). For this, we help business owners create slide decks that communicate your vision of the business and assumptions that will make or break your model.
Plans, projections, and/or slide decks are the first step. Then organizations must find funding, specifically what organization or individual will fund their business. Different items being funded could mean multiple funding sources will be needed. It is important to evaluate which is the best type of funding. This depends on the terms offered and amounts needed. In the end, this all must be packaged in a way that the money can be approved, lent, and/or exchanged for equity.
It is important to understand that to get your business funded you have to be able to communicate the vision and plan for your business. You must understand your business model and be able to answer questions those providing money need to know. Additionally, it is truly a paperwork exercise. The process is set up in part to make sure that you can follow a process and do what is needed. Lenders and investors need to know you can follow through.
Fund Your Business Video
Our Fund Your Business Service Initiative
Innovative Dubuque LLC brings expertise to the funding process including numerous multi-million dollar projects. Our consultants have worked with organizations and people from varied backgrounds and capital needs. One example is a project where 5 funding sources were needed to raise over $6 million. Packaging this information to attain funding requires a great knowledge of how to fund each different type of money needed (land, building, assets, working capital, and so on).
For debt financing our process is to utilize your plans and financial projections to find funding:
- What type of money will match the need for each part of your plan
- What terms and rates that money will come with and how to combine this efficiently
- How you can best leverage your current capital and assets
Our experience helps the entrepreneur to run different scenarios so that they can understand what funding options mean to their business and future prospects. We educate as we inform and help the businesses get to the best possible decision, which is much easier to make when it is fully understood. This understanding helps you make the best decision with the most likely overall chance of success.
For those interested in knowing more about debt financing please checkout the packages on our business plans and financial projections page. For those interested in equity financing your next stop should be our slide deck assistance page. Whether you are looking for debt or equity we help you find funding.