We are hitting the midway point in the Emerging Leaders course I teach through Interise at the SBA and just finished our second class in the financial section. This is always the toughest section for everyone because let’s face it, there is only a small portion of entrepreneurs that love the numbers. However, if it weren’t for the numbers, there would not be a business. In fact, when the lights go on for understanding about how to move the needle by pulling the different levers or metrics financially, business can be really fun!
When entrepreneurs understand how to interpret the data on financial reports, they can start to grow their businesses in a more thoughtful way, which usually means “safer.” Of course, sometimes knowledge can make us wish we didn’t know what we were looking at so we could go back to “ignorance is bliss,” but knowing is better. If you look at the stats for why small businesses fail, lack of cash is almost always the leading cause. So, first comes knowledge, then comes the need for more money.
There are multiple ways to get money for a small business but they are not always easy or in fact advisable. When someone asks me which approach to take for funding, my answer is always – it depends. And now, thanks to a local banker who forwarded me this amazing free resource, all the information about funding is available to you in one place!
Maury Forman with the Washington State Department of Commerce Office of Economic Development & Competitiveness created this ebook call Start Up Wisdom that has 27 different funding strategies for you to review. Each one only takes up two pages and he talks about the pros and cons of each. I think this is absolutely the BEST guide I have ever seen for entrepreneurs who are thinking about funding. It walks you through what each strategy is, how it works, advantages and disadvantages and an example of each.
And although this was written by our Washington State Department of Commerce, it really can apply nationally as it’s all the same. So for all of you entrepreneurs, would-be entrepreneurs or junkies of information, here is the funding guide for you. I’m going to start using this as a resource for my participants immediately. Thank You, Maury Forman and Washington state! I appreciate seeing my tax dollars go for a great cause!