How to Grow Quickly, Without Investors

How to Grow Quickly, Without Investors
Image credit: Shutterstock

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
President of Peter S. Cohan & Associates
2 min read
Opinions expressed by Entrepreneur contributors are their own.

Editor’s Note: YoungEntrepreneur’s Ask the Expert column seeks to answer readers’ questions about everything from starting and running a to raising funding and growth strategies. To follow the column on -- and to ask a question -- use hashtag #YEask, or leave a comment below. Your query may be the inspiration for a future column.

Q: What's the best way to grow your business without taking on investors? Are there government loans out there for ?
- Chris Perkins
,

A: The best way to keep from taking on investors is to make a profit. The second best way is to get your suppliers to give you generous payment terms so that you don’t have to pay for things right away.

Related:  How to Raise Capital for Your Business

It is hard for small businesses to borrow money unless they have collateral that banks consider to be valuable. So, for example, if your business was a gold jeweler, a bank might consider your inventory to be sufficient collateral against which to loan you money. If your only assets are the people in the company and maybe some software they’ve written, you will have a tough time getting money from banks.

But there are sources of for . For instance, through the Small Business Innovation Research (SBIR) program, the National Science Foundation gives grants to startups that aspire to harness the value of novelty.

Related:  7 Tips to Successful Fundraising for Young Entrepreneurs

You might also try the Small Business Administration’s 7(a) Loan Program  that helps small businesses with special requirements, such as exporting to foreign countries; its Microloan Program  for small businesses and not-for-profit child-care centers; or its CDC/504 Loan Program that offers business financing for small businesses while promoting growth and job creation.

Have a question for YoungEntrepreneur’s experts? Leave a comment below and tune in next week to hear from our new Ask the Expert contributor.

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Amplify your business knowledge and reach your full entrepreneurial potential with Entrepreneur Insider’s exclusive benefits. For just $5 per month, get access to premium content, webinars, an ad-free experience, and more! Plus, enjoy a FREE 1-year Entrepreneur magazine subscription.
Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.

Latest on Entrepreneur