Guest contribution: Honoring the women entrepreneurs from Ogden on International Women’s Day | Guest comment

International Women’s Day is Monday March 8th, and this day is a great time to recognize the important role women-owned businesses play in Ogden. From technology to fashion to healthcare and manufacturing, there are women-owned companies that cover almost every industry in our country.

Despite their successes, women entrepreneurs in Utah face the same challenges as any business owner when it comes to obtaining funding for their businesses. This is especially true for new business owners who are just starting out and may have limited credit ratings. However, there are more small business financing options today than ever, and each one is well worth knowing.

Here are five types of finance to investigate when starting, running, and growing a small business:

SBA loans and resources – Whether you’re starting a new business or growing an existing one, the US Small Business Administration (SBA) offers a variety of loan products tailored to meet the funding needs of businesses of all sizes, including smaller, newer businesses. Through SBA loans, Wells Fargo provides financing to Utah businesses that may not be able to obtain a traditional loan or loan terms that suit their business needs.

The SBA also has a number of programs and resources specifically designed for women entrepreneurs. A good place to start is the SBA Women’s Business Centers. There is one nearby at Salt Lake City, 175 E. 400 South, Suite 600. These centers are designed to help women start and grow their businesses by providing seminars and workshops on a variety of business owner topics, including raising capital.

Business credit – At some point, most small business owners in Ogden will see a need for credit as their business evolves and their financial needs change. When used appropriately, credit can fuel business growth opportunities, from covering basic costs to supporting capital expenditures. There are many types of loans to consider depending on your financing needs and your stage of business. Talk to a commercial banker to find out which option is right for your business.

Self-financing Many Ogden entrepreneurs self-fund their businesses either by using savings, selling assets for cash, or taking on personal debt. While self-financing increases your personal liability, this method of financing offers several advantages, including complete control over your company’s financial decisions. As our bankers will tell you, self-financing is also a smart way to show that you are truly committed to success. The more you invest in your business, the easier it will be to raise capital from other sources later.

Investors – Another common way to fund a business is through investors. Often times, an investor is a family member or friend who can invest capital upfront to cover startup costs. This might seem like a good idea at first, but it’s important to have a formal agreement in place to protect your relationship from the losses that can arise if the business fails. If you want to stay away from personal relationships, an angel investor may be better suited. Angel investors in Utah are usually wealthy individuals or investment groups willing to invest in new businesses and ideas. To improve your chances of securing an investor, you need to demonstrate a healthy credit rating and come up with a written business plan with an investor repayment strategy.

Crowdfunding – Crowdfunding is mainly based on online funding and is the practice of funding a project or business by raising small amounts of money from a large number of people. While crowdfunding has been around for a long time, social media and online crowdfunding networks made up of thousands of investors have helped make it increasingly popular with entrepreneurs and startups. From donation-based to reward and share-based options, there are many types of crowdfunding options available. The method you choose may depend on the type of product or service your company offers, cash flow, and sales projections.

When considering financing options for your Ogden business, it is also important to familiarize yourself with the loan process so that you know what to expect – from preparing to applying, applying and managing loans. Wells Fargo’s new Business Credit Center is designed to help business owners learn about the credit process, funding options, and fill in gaps in their understanding of credit.

No matter how you finance your business, remember that knowledge is power. Take the time to arm yourself appropriately so that you can confidently control the credit journey at all stages of your business.

Shawna Laws is the District President at Wells Fargo Bank in Utah.