Starting your own business can be a little puzzling, especially when it comes to the financial part of it. Ann Marie Wallace from The Women's Business Center shares a cheat sheet revealing five different funding options for a business.
- Bootstrapping- Pay for it yourself, or borrow money from family and friends.
Advantage: Owners are more careful with how they spend the money and may have low or no interest rate.
- Crowdfunding- Using a social platform to raise a little bit of money from a lot of people by selling units in advance.
Advantage: A great way to fund manufacturing and build a customer base.
- Microloan ($) - A small business loan for $50,000 or less.
Advantage: Requirements may be less demanding with quicker approval.
- Revolving Loan ($$)- A business loans from your city or county.
Advantage: Potentially lower interest rates with quicker approval.
- SBA Loan ($$$)- A business loan backed by the federal government.
Advantage: This type of loan is safer for lenders and higher approval rate than without the SBA.
By considering different options, you may be able to fund your business with a combination of them. Remember, the first loan is usually harder to get than the last one. With enough 'gas in the tank' your funding can get your business moving forward until profits can take over to sustain your business.
To get resources to help with your business, contact the Women's Business Center.