Choosing the appropriate form of financing for your business venture is important for meeting your goals in a timely manner and reducing any unnecessary financial stress. Addionally, some sources of funding are not available to certain ventures. If you are franchising, for example, seeking investment from a venture capitalist (VC) will prove to be a waste of time because they do not fund these types of businesses. If you are starting your own company, you are not likely to secure an initial bank loan because your business does not have a proven track record. This route will also be less cost effective for you in your bootstrapping years.
The process of funding your business can be complex, but having an understanding of the different characteristics associated with each source of funding will help greatly. There are also programs and resources available to you throughout this process. NMEDD’s Finance Development Team (FDT) employs experts to help you along the way. Team members work alongside New Mexico companies, ranging from technology businesses to retail operations, introducing them to the sources of financing and programs that fit their needs. They will assist in reviewing company’s financial statements, advisement on the appropriate sources of funding, and consulting in other aspects of doing business.