Your business coach will help you figure out how much money you’ll need to start your business, based on your unique business plan. If you don’t have that amount of cash on hand, you’ll need to either raise or borrow the capital. Fortunately, there are more ways than ever to find the capital you need. weVENTURE Women’s Business Center is committed to helping clients understand their options and make informed decisions.
Otherwise known as bootstrapping, self-funding lets you leverage your own financial resources to support your business. Self-funding can come in the form of turning to family and friends for capital, using your savings accounts, or even tapping into your 401k. With self-funding, you retain complete control over the business but you also take on all the risk yourself. Be careful not to spend more than you can afford, and be especially careful if you choose to use tap into retirement accounts early. You might face expensive fees or penalties, or damage your ability to retire on time — so you should check with your plan’s administrator and a personal financial advisor first.
If you want to retain complete control of your business, but don’t have enough funds to start, consider a small business loan. SBA backed loan products are the most common path small businesses take to access capital. While most businesses are ready to apply for a loan when they hit a growth phase after a few years in business, some products are specifically designed to assist with buying a business, equipment, and other up-front costs a start-up business might face.
To increase your chances of securing a loan, you should have a business plan, expense sheet, and financial statements for previous two years or projections for the next five years. Market research and competitive intelligence are also helpful for start-up ventures. These tools will give you an idea of how much you’ll need to ask for and will help the bank know they’re making a smart choice by giving you a loan.
Your weVENTURE WBC business coach can work with you on getting lender ready. Once you have your documents in order, you’ll want to compare offers to get the best possible terms for your loan. Contact local banks and credit unions to request a loan. weVENTURE WBC can also help introduce you to our trusted lending partners.
Read more about the types of SBA Loans on the official SBA website or this brief summary:
Standard 7(a) Loan
The 7(a) loan program is the SBA’s primary program for providing financial assistance to small businesses. The terms and conditions, like the guaranty percentage and loan amount, may vary by the type of loan.
7(a) Small Loan
Maximum loan amount $350K with turnaround of 5-10 business days. Interest rate negotiable
Export Express
The Export Express program provides exporters and lenders a streamlined method to obtain SBA-backed financing for loans and lines of credit up to $500,000. Lenders use their own credit decision process and loan.
SBA Express
Maximum loan $350K. SBA to respond to application within 36 hours. Loans for up to 84 months
Export Working Capital Export Working Capital loans are for businesses that can generate export sales and need additional working capital to support these sales. Lenders review and approve applications and submit the request to the U.S.
International Trade
International Trade loans provide long-term financing to businesses that are expanding because of growing export sales, or that have been adversely affected by imports and need to modernize to meet foreign
Investors can give you funding to start your business in exchange for an ownership share and active role in the company. Almost all investors will, at a minimum, want a seat on the board of directors. So be prepared to give up some portion of both control and ownership of your company in exchange for funding. You may have heard of terms such as “Angel Investors” and “seed funding,” but the most common types of investors are venture capital and private equity Investment. While venture investors generally like to get involved during the start-up phase, so they can maximize returns via growth, private equity investors often prefer to support more established businesses.
Venture capital differs from traditional financing in a number of important ways. Venture capital typically:
Crowdfunding raises funds for a business from a large number of people, called crowdfunders. Crowdfunders aren’t technically investors, because they don’t receive a share of ownership in the business and don’t expect a financial return on their money. Instead, crowdfunders expect to get a “gift” from your company as thanks for their contribution. Often, that gift is the product you plan to sell or other special perks, like meeting the business owner or getting their name in the credits. This makes crowdfunding a popular option for people who want to produce creative works (like a documentary), or a physical product (like a high-tech cooler). Crowdfunding is also popular because it’s very low risk for business owners. Not only do you get to retain full control of your company, but if your plan fails, you’re typically under no obligation to repay your crowdfunders.
There are several crowdfunding platforms that help entrepreneurs start a campigan. Every crowdfunding platform is different, so make sure to read the fine print and understand your full financial and legal obligations.
Various organizations offer grants to help fund your business. Grants do not need to be paid back but there may be deliverables required to report back.
Contrary to popular belief, business grants are NOT a common way that small businesses access capital. They are often very competitive, designed to serve specific constituency (hyper-focused on specific location or industry), and they are often only available at specific times or via specific application process. For this reason, business owners should not plan on grant funding as a significant component of your growth strategy.
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weVENTURE Women’s Business center is funded in part by cooperative agreement with the US Small Business Administration.
weVENTURE WBC is also a member of the Association of Women’s Business Center.
Hope2Women is a program of the AWBC, helping others prosper through entrepreneurship.
The Hope2Women funding center will walk you through what you need for a successful funding application.
Our business coaches can help you determine the best strategy to access the capital you need to grow your business. We can help you write a great business plan and get your finances in order so you can provide accurate financial reports or projections. Our coaches have also received training from Credit Builders Alliance, so they can help you understand how your personal credit may impact your ability to qualify for business loans.
The Office of the Advocate for Small Business Capital Formation is an independent office established by Congress (view the SBA Act of 2016) to advance the interests of small businesses, from startups to small public companies, and their investors at the SEC and in the capital markets. Through outreach and education, the office works to identify and address capital–raising issues. Their website has information to guide you through determining what type of capital to leverage, how to assign ownership shares, valuation, and other considerations when taking on equity investors.
Visit the Office of the Advocate for Small Business Capital Formation website.
Bank of America, in partnership with Seneca Women, announced the launch of the Bank of America Access to Capital Directory. This first-of-its-kind platform is a resource to help educate women-owned businesses in the U.S. on navigating the capital landscape and identifying potential sources of funding, such as equity, debt and grant capital.
Visit Bank of America Access to Capital Directory Website
From a grant to jazz up your online storefront to a loan to help you stock up on inventory, the Small Business Funding Center connects you with the capital you need to launch and grow your small business. The juggle is real for hard-working entrepreneurs like you, so you can bank on easy applications and personalized recommendations here.
The Tampa Bay Women’s Business Center, a program of the Center for Women, maintains a list of known grant programs for female entrepreneurs.
Visit the Tampa Bay Center for Women Website
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Funded in part through a cooperative agreement with the U.S. Small Business Administration.
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