Capital Campaigns

All businesses, regardless of the industry, needs money to launch, grow and sustain successfully. 

Capital is the lifeblood of your business. Without it, your business won’t survive.  People open businesses with the intention of building wealth.  However, reaching that level is unattainable for many business owners due to lack of working capital.  In order to avoid financial failure, LIFE of a CEO™ educates our business owners about their options and the various forms of available capital.    There are several avenues to obtaining capital for your business.  LIFE of a CEO™ assists its members in understanding where their capital should come from and how to acquire it.  LIFE of a CEO™ will develop and partner with your firm to present the most viable financing vehicles with the lowest risks and the best return. 

Where is the Money?

Businesses that succeed often know where to find the money to finance their operations. LIFE of a CEO™ has listed some of the most popular sources below:

Self-Financing:

Small business owners often invest their own hard earned money into their new ventures.  "Overall, small firms rely more on owner capital and less on external debt than larger firms," reports the Small Business Administration. Common sources include personal credit cards (39.1%), business credit cards (27.7%), and other owner loans (16.5%), including home mortgages and home equity loans. Others tap life insurance cash values or sell assets to find funds. ("The Facts About Small Business, 1997," Small Business Administration)

While using your own funding is acceptable, it may not be the smartest way to launch your business.  Using your own money can create stress and strain on your personal household.  In addition, you may be subject to higher rates on your borrowed funds. 

Private Financing:

Family and close friends should definitely be considered as investors.  In doing so, you either establish a loan repayment plan or offer equity in the developing business.  We advise you to consult your Virtual Business Partner™ and a lawyer if you plan to pursue private financing options.

SBA (Small Business Administration):

The next best option for a small business owner is to contact the Small Business Administration (SBA).  The SBA offers small businesses a wealth of services.  They can match you with potential investment companies who are available to lend money to legitimate ideas and businesses.  Once again, offering a detailed business plan is necessary. 

The SBA also offers SBA loans and grants for budding businesses.  Many of the SBA loans and grants require great detail and commitment.  There are usually limits to the available funds dependent upon your local,  business industry. 

Personal Banking Institution:

Your personal bank is definitely an option for obtaining capital for your business.  These banking centers offer various lines of credit and loans to its existing clients.  It is critical that you build a great working relationship with your potential lender prior to applying for the loan.  Your banking institute will heavily evaluate you and make a decision based on their criteria and your history with them.