Do you have an idea for a business? Do you currently own a business and you're looking for capital to expand? The good news is there are a variety of capital resources available to you. But figuring out the best option for capital is a more difficult task. Not every type of funding is available to every type of business.
So how does an entrepreneur answer the question of capital? The answer to that question is an important one for the entrepreneur or small business person to understand as they determine the short- and long-term prospects for their business venture—and the potential need for funding sources.
NetWork Kansas has developed a chart that provides an overview of the types of funding available to a variety of businesses—from startup, to growth, to maturity. Entrepreneurs must assess their opportunities for funding based upon a variety of measures including:
- Type of business they are in: The type of business and its prospects for growth will determine the funding options available. For example: A non-technology business with limited growth potential will not qualify for angel investors.
- Entrepreneur’s own capital investment: Generally speaking, the entrepreneur’s own capital investment and collateral will impact their ability to raise additional capital. (If the entrepreneur does not have capital or collateral to invest in their own venture, then it’s unlikely that outside sources such as banks or public entities will be willing to invest.)
The following chart is a guideline for to help you build your business plan and determine the types of funding that are available to you.
