Environmental conservation has become a key focus point for many businesses today. Consumers are keener on getting products and services from business that is sensitive to the environment. If you are a business owner, going green can open up the market to gain the support of a much wider customer base. Getting financing is an important part of setting up a good business. There are various ways that you can get eco finance for your business including:
•Small business loans
•Financing from friends and family
•Partnering with NPOs
Small Business loans
Small business loans through local banks are a great way to start of your business. The small business administration approves these loans as well as has development centers where individuals starting new businesses can get help with writing business plans and developing business strategies. The small business loans are very helpful and come with favorable interest rates since it is difficult to determine the success of the business from the start up.
Financing from friends and family
Investors known to the founder of the business also fund many start-up businesses. Friends and family who have access to large amounts of capital can also fund the business, with or without expecting a share of the business. Sometimes this funding is in form of convertible debt. Family and friends as credited investors can also offer you favorable terms on how to repay these investments. No matter what they are willing to offer, a small amount of money contributing to your other financing options can help a long way in starting of your business on the right foot.
Partnering with NPOs
Non-profit organization plays a great role in environmental conservation efforts. Some of them have the mission to create job trading and employment for disadvantaged individuals. Therefore collaborating with a starting up company that has the potential of creating employment for these individuals is a good deal for them. The non-profit organization will ensure that the entrepreneur receives royalties for their invention but the business run with other goals that simply maximizing on profits. Running such as business can also get you support from other organizations that want to contribute to the cause.
Various angel investors are always looking for a business to invest in during start up. Angel investors are affluent individuals who can help you with capital for business start up in return for ownership equity. Some angel investors even organize themselves into angel networks and invest in various businesses. You can approach such groups with your business plans and receive financing for business start-ups allowing them to own part of your business. Most angel investors are retired entrepreneurs or executives and have a keen eye for business that have a lot of potential. If they invest in your business then there is a lot of potential for growth. They also offer a lot of mentorship for running business based on their lifetime of experience.
Christian Rood is a business professional working with small businesses through giving loans and business mentorship. You can read more about business financing at leasequit.com.