Before the arrival of the information technology or IT industry the main source of funding used to be the conventional banks and their complex lending procedures. Today information technology business funding in Oklahoma and elsewhere is way more diversified but simpler.
The typical mode of funding in the IT industry is venture capital (VC), angel, and crowdfunding among other lesser-known modes. Getting VC, angel, or crowdfunding is what every tech-enabled startup wishes for.
What if none of these modes of funding are available in the time period you need the cash? Don’t lose heart and start wondering “Is there any scope of funding for businesses near me in Oklahoma?”.
There are in fact, newer and more efficient funding options available for you if you look around seriously. Of course, that doesn’t mean you sit down to deal with just about any such lender that comes your way.
You can go for debt funding, which is a much better option early on when your requirement is smaller. You won’t like to dilute equity for a smaller amount in a business that you consider promising.
The unique thing about IT is that businesses in this industry have been able to scale up to become multi-million dollar entities within a very short time.
You need to move your business to the next level
That happens only when you have been able to innovate something really promising. To reach that stage, your solution should be ready for the market. Thereafter, you need serious cash to enter the market and race away with the pioneer’s advantage.
Some start-ups that have grown big enough over 3-5 years are known to have raised hundreds of millions of dollars in exchange for just a fraction of their equity.
Apparently, such businesses had grown that big with debt funding modes like merchant cash advance in Oklahoma and other places early on. When the quantum of capital requirement is larger it is sometimes advantageous to go for equity funding.
The main cost of your business is skilled labor
IT businesses are labor-intensive as you require very highly skilled workers who are expensive. You need to have a robust resource-planning and mobilization team to constantly look around for the best talent at the lowest possible cost.
That’s not easy to do because of the competition wherein many IT businesses with deeper pockets would simply poach your personnel if they happen to know that they cost less.
Attrition is pretty high in the IT industry as talent is the main resource here and all businesses that want to grow are constantly trying to come up with some or another solution.
You will need to have ready access to funding for businesses in Oklahoma in order to hire expensive talent. At the same time, you should also have a clear direction for your endeavor so as to get what you want from your employees.
Today, you have a lot more funding options for your tech startup with reputable lenders like Alternative Funding Group, which offers several funding options that are easy and fast.