Planning To Succeed

You Heard the One About Grants for Businesses?

Though traditional lending institutions such as commercial banks are reluctant to make loans to new businesses, there are other avenues for capital formation to consider. The most important thing is not to go out on a limb without at the very least holding a part-time job. Money fuels the business, so have a source. Please read below about funding misconceptions and the means to pool capital. • The Foundation Center has a statement on its website that foundations don’t fund business start up or expansion. Rather, there is giving to individuals for research, artistic projects, or small community projects. You can still do due diligence to uncover where are the millions of dollars for women/entrepreneurs at The Foundation Center. • If your enterprise is a social venture (i.e., having a strong charitable component), there are foundations that do Program Related Investments. • The federal government, especially the US Small Business Administration, doesn’t give grants to businesses. • There are business plan competitions with cash awards in the thousands. Using Brooklyn as an example, the Brooklyn Business Library has the annual PowerUp! Competition and the Local Development Corporation of East New York’s Women’s Business Center sponsors an annual competitions. • ACCION USA and Women’s Venture Fund offer microloans with low interest rates. • With a viable business plan, an emerging business can present itself to angel investors--silent investors-- and venture capitalists--give business directives--who give money to hot emerging enterprises. • Crowd funding is an online funding platform that permit many people to make small donations or awards to a project. This form of capital formation has become a global phenomenon. Popular crowd funding sites in the US include Kickstarter.com, Indiegogo.com and Rockethub.com). At first it was limited to nonprofits and charitable organizations but things have changed. Visit this particular page on OPEN forum--which in itself is another important business resource--for pointers. http://www.openforum.com/articles/9-steps-for-getting-kickstarter-dollars • You can use LinkedIn or Facebook where you establish a page for the business and then, add a campaign. With Facebook, people would ‘like” you to get a discount, a free download, or a coupon for a free item. You can also create a Facebook ad that's seen on other Facebook pages. This is much cheaper than other forms of advertising. LinkedIn has Direct Ads campaigns that you can use to raise funds for your business. Check this link to learn what US Rep.Patrick McHenry is doing to include crowd funding to drive capital formation in the US: http://mchenry.house.gov/crowdfunding/ • Cash Mobs are people agreeing to converge on a particular store for one day to shop. The arrangements are done through social media. The members of the “Mob” agree to a dollar amount each will spend at the place. Cash Mobs arose to support the small locally-owned retailer feeling the crunch of the big-box retailer. To learn more about it click this link: http://www.cashmob.com/ • Getting certified with NYC Small Business Services, NYS Empire State Development Corp, Port Authority of NY & NJ, etc as a Minority/Woman-Owned Enterprise brings many services to a business. New York City has a several great programs to advance a business, one being procurement assistance. • The tried and true models for funding start ups include having a job; revolving loan funds; lines of credit; loan or bond guarantees (lowers interest rates); the Su-Su, and owner’s equity. • Finally, There are places that give to businesses; however, the awards tend to be small. Visit www.womensnet.net to apply for The Amber Grant (up to $1,500) and www.peachic.com to apply for a grant ranging $500 - $1,000.

Labels: business, capital formation, equity

posted by Unknown @ 10:02 AM