You have a great idea for a start-up and are ready for the next step. But first, there are serious decisions to make: Will you work from home or rent space? Hiring Employees or go solo for a while? And perhaps most importantly, how will you finance your new business?
Landing sufficient funding to get a business off the ground can be the most critical problem for someone in startup mode. Many of us have seen the fight in action on television programs that help small business owners to obtain financing. (Think Shark Tank .)
Fortunately for the camera shy (and everyone who does not know where to start), there are other ways to finance your small business who do do not include raiding your 401 (k) or hitting friends and family. While a bank loan is still a possibility, there are now more alternative sources of funding than ever
Four alternative funding sources
- Fundable :. This crowdfunding company has a fairly simple process, from beginning to end: Create a profile on the fundable site, spread the word about your product and open it for funding. Companies that receive funds on Fundable crowd raised anywhere from thousands to a few dollars more than a million. You can choose to raise funds is paying rewards (sell your product or service) or equity (offering of shares in your company)
- Program SBA Microloan :. You'll pay a lot types of taxes as a business owner. So why not let the government help your startups get off the ground? This branch of the Small Business Administration (SBA) provides loans of up to $ 50,000 to help small businesses start and grow. The loans are awarded by a local SBA intermediary. (There are in every state.) The small business owners may be required to meet the requirements for training or planning in order to be eligible for a loan
- Awesome Foundation :. Looking for a little funding unconditionally? It is actually impossible. The Foundation impressive price $ 1,000 grants each month for projects in need of funding. They have locations worldwide. Each chapter has a board of about 10 members who donate $ 100 each month. This pool of money is then allocated to one lucky small business owner. The Foundation does not require an investment in your business or other concession in exchange for funding
- ACCION USA :. ACCION USA is a microfinance organization that has lent more than $ 272 million for small business owners since its creation in 1991. They offer business loans up to $ 50,000 depending on the status and profitability of your business. There are four different levels of funding available. Relatively new start-ups can receive up to $ 10,000 while the profitable businesses that have been in business for six months or more are eligible for up to $ 50,000.
A you cross the hurdle of financing, do not forget about business insurance to protect your new business. Contact an insurance professional as a local Erie insurance agent to learn more about affordable coverage that gives your business the protection it needs.
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