Unless you’re an entrepreneur with a high-tech product coming out of Stanford or Harvard Business School, you know by now that entrepreneurs are not receiving startup funding. Period. They’re not receiving debt financing, they’re not getting microloans, they’re not procuring public contracts, and they’re not getting grants. Recently, we sought to help an entrepreneur with a fully-collaterized startup loan application ($150,000), stellar credit, great business plan, and money in the bank. Alas, nobody would make the loan, not even microloan intermediaries.
Why?
Quite simply, nobody is ready to take on the level of risk inherent to startups.
Startup Funding
If you’re a startup, however, there’s still a way you can work around this issue: STOP BEING A STARTUP. If you begin operations and can prove there’s a market for your product or service, even for one quarter, the problematic label of ‘startup’ disappears and suddenly you have access to microloans, which are the best vehicle to build up toward more traditional debt financing. This isn’t rocket science, but you’d be surprised how many entrepreneurs continue to push for startup funding and get discouraged when it’s not forthcoming.
So, whatever it takes, whatever you need to do, simply launch your business, make your market tangible, and you’ll open doors that would’ve remained closed otherwise.
The key, of course, is to handle each step of the process with foresight and discipline. Knowing exactly how to structure your debt-to-income ratio, maintain your personal credit, and file taxes appropriately are crucial components of the process. Your supply chain, procurement, and distribution networks should be properly benchmarked and strategically implemented. That’s all you need to know if you’d like access to capital for your fledgling business.
Learn More About Startup Funding for Operating Businesses
The Los Angeles Mayor’s Office of Economic Development, MCS BusinessSource Centers, and the US Small Business Administration will be hosting a Veteran’s Entrepreneurship & Career Expo at the City of LA Harbor BusinessSource September 24, 2014.
The event includes a short introduction to startup funding followed by Q&A with experts on access to capital.
To register or for more information, please click here.
Oh, and did we mention Veterans are eligible to win a $500 gift card to the Apple Store? All you need is a DD214, to be present at the drawing, and, well, to want the new iPhone 6.
Learn more about the Expo at http://www.lasmallbusiness.org/harbor-businesssource/veterans-business-career-expo/
