4 Strategies for Obtaining Capital for Your Veteran-Owned Business

As a small business owner, securing capital for your venture can be daunting. Fortunately, there are many options specifically for veteran owned and military spouse owned businesses. Regardless of which form of financing you choose, there are a few things you need to have in order to be successful in obtaining enough capital to get your business going (and growing).

#1: Know Your Business

Before you start down the road of financing your business, you need to have a plan for that funding – and ensure that you know exactly how much you’ll need. You’ll want to write a business plan that covers your business idea, marketing research, plan for delivery of your product or service, cost analysis and sales projections. You’ll want to be thorough and straightforward in this plan, and be ready to share it with prospective investors or financial institutions.

#2: Know Your Financing Options

There are many options for veteran owned businesses to obtain enough financing to launch or grow their ventures. Typically, you can choose between grants, loans, bootstrapping, or investors – or a combination of some of these. You’ll want to thoroughly review each opportunity, and decide which one is right for you. You may not feel comfortable with bank financing, or want to bring on an investor. You may not have the resources to bootstrap your business. The key point is that every business is different, and you need to decide which will be the best option for you specifically.

#3: Be Credit Worthy

At some point in the life of your business, you’ll likely need to consider a loan or a line of credit for your business. Even if you’re not ready to jump into this option – you’ll want to keep it open, just in case you need it to cover an emergency. To this end, make sure you know your current credit standing – both personal and your business credit. If your scores are less than desirable, start working today to rebuild your score.

#4: Stay On Top of Your Financial Projections

If you’ll be seeking an investor or a bank loan, you’ll need detailed financial projections – and the data to back them up. You’ll have to answer questions about these projections; so don’t inflate your reports just to get the financing. If you are an established business, expect to provide this information for the past three to five years. If you are a new business, any proven financial information you can provide will help you reach your goal of obtaining financing.