Tips for small business funding

NEW YORK, USA: The American economy is an engine that breeds entrepreneurs, however, some might worry that finding funding might be difficult during tough economic times. Fortunately, there are resources to help small businesses accomplish their goals and continue to grow.

“Now is the ideal time to embrace one’s entrepreneurial spirit and start a business,” says Leonard J. Sokolow, President and Vice Chairman of National Holdings Corporation (OTCBB:NHLD), the third-fastest growing independent broker-dealer in the United States.

Sokolow, who is also a co-founder of vFinance Investments, Inc., a principal operating subsidiary of National Holdings that provides brokerage, trading, and investment banking services, offers the following tips to burgeoning entrepreneurs:

What’s Hot/What’s Not: Certain sectors that are thriving at present include alternative energy, healthcare, and tech; entrepreneurs would be wise to ask themselves if their business ventures capture the spirit of the times.

Friends, Family, and First Dollars: During initial rounds of fundraising, entrepreneurs often invest their own seed money, and/or hold a round of friend and family financing.

SBA Loans: The Small Business Administration (SBA) is a U.S. government agency that provides support to small businesses by making loans directly to businesses and acting as guarantor on bank loans. In its over fifty-year history, the SBA has directly or indirectly helped nearly twenty million businesses.

Venture Capital Funding: Having a detailed, well-defined, and realistic business plan, along with a strong advisory board/board of directors are keys to attracting fresh capital. It is always best to meet prospective venture capitalists through an introduction (one’s accountant, lawyer, friend, angel investors, or through business conferences).

Utilize Free Resources: Recognized as the primary online connection point between serious-minded entrepreneurs and the capital industry, www.vFinance.com offers a free directory that shows fledgling entrepreneurs how to create an investor-ready business plan, then posts that plan for viewing by hundreds of potential accredited investors each month.

“Regardless of the challenges in the economic environment, with a good idea and the right resources it is always the time to thrive,” says Sokolow, who is also co-founder of the Center for Innovation and Entrepreneurship (CIE), a not for profit corporation established to measure innovative entrepreneurship’s impact on the global economy.