Guaranteed Small Business Funding: Does It Really Exist?
Over the last few months we’ve had a lot of questions from small business owners and startups asking us if guaranteed small business funding really exists. So we decided to address that question on our blog and show you what is possible and what is impossible in terms of funding.
Before we start, you have to understand what funding really is.
Funding is the money, or the capital, that you as a small business owner or startup entrepreneur are seeking to help you start up, purchase land, equipment, hire staff, train staff, advertise and market, or conduct research and development. Funding is the money that you need to have invested in your business to make it successful.
GROW YOUR BUSINESS WITH GRANTS & LOANS
Learn about the funding available for your small business. It just takes a second!
Is There Guaranteed Small Business Funding?
Funding for your small business can come from multiple sources, thus the word guaranteed really depends on the source you are looking at, as well as on your personal and business situation.
The main funding sources include your personal savings, credit cards, bank loans, business partners, family, friends, private investors, and government agencies. Depending on which source you are talking about, “guaranteed” could apply.
For example, if you have $10,000 in your savings account and you are planning on using that money to help you hire staff, then that $10,000 becomes your guaranteed funding. Or if you know that a family member is going to provide you with money to conduct research and development because you already talked about it, this can also mean it is guaranteed.
But most people, when looking for guaranteed business funding, are talking about government funding agencies that provide grants, loans, and tax breaks.
So does the government of Canada provide funding to small business owners? The answer is yes.
Does the government of Canada guarantee you funding if you apply? The answer is no.
As much as you believe your idea and your business are the next Facebook or Netflix, it does not mean that it has what it takes to obtain funding from these agencies.
So before you decide that you are guaranteed funding, be sure to consider these few things that most government agencies ask of you:
- Do you have a business plan in place?
- How is your personal and business credit?
- Do you have any money to invest in the business?
- What is your industry and your funding needs?
Keep in mind that when applying to funding programs offered by the Canadian government, you have to be specific about which agency you deal with, for your province, and for your exact industry and funding needs.
It can happen that certain funding agencies only provide funding to specific provinces, specific industries, or even specific funding needs.
Do your research before applying so you are not wasting your time.
Remember that nobody can guarantee you funding because it is really out of somebody else’s control. It depends on your business, your business plan, your credit history, the agency you apply to, the time of the year, and many other factors that may be program or agency specific.
To get a little help searching for funding programs, consider becoming a member of CanadaStartups and using the Funding Database. The total number of government funding programs in the database is over 800, and you also get access to over 800 private investor programs as well. Take a look at the Funding Database to see what it has to offer and how it can help your small business in Canada.