Capital For Minority Business Startup: Start Up Capital

Start Up Capital - Minority Business Owners

By Business Editor

For the minority business owner, there is a plethora of available funding sources, as this article explains ...

Finding funding to have start-up capital for your new business is a difficult thing for anyone. Likely, you'll be searching for options to provide sources of income to get your business off the ground, and that can include personal savings, retirement funds, or even tapping into your credit cards. Sometimes, these options aren't enough to provide the money you need and looking at alternative ways to raise start-up capital becomes necessary.

Friends and family are an excellent source of revenue, if they are in the position to contribute. However, many people simply do not have the money or desire to invest. Thus, it is often necessary to look for outside sources of capital.

Traditional routes of funding have become quite difficult for new entrepreneurs to obtain. Banks and venture capital firms generally prefer to invest in more well-established companies, which carry a lower risk. Angel investors are an available option; however, angels can be difficult to find, and they constitute only a small percentage of the total funding acquired each year.

Fortunately, the minority business owner will find a plethora of available funding sources. The Small Business Administration serves as guarantor for a variety of small business loans. One of their programs is specifically designed for the minority entrepreneur. Various other organizations also offer programs for minorities in addition to their regular loans. Additionally, some grants and loans are offered through religious organizations, alumni groups, and other sources. The amounts of money are often low, but combining several of these sources can provide sufficient capital for startup.

Though great strides have been made, minorities are still underrepresented in the ranks of business ownership. The Service Corp of Retired Executives is an excellent resource for any new entrepreneur. With the ability to choose your counselor, it is possible to choose a mentor who understands the particular challenges that minority entrepreneurs face.

Qualifying for a minority funding program generally requires a person of ethnic minority to hold controlling interest in the company. Therefore, the structure that you choose for your company's organization is critical. If you have partners who are not of ethnic minority, it is important that you retain controlling interest. Your SCORE counselor can help you decide the best structure for your company. It is important that these basic decisions be made before the company is officially formed, as changing the organization's structure can be difficult and time consuming.

Finding startup capital for your new business might be difficult, but there are many possibilities to explore. Look into the requirements of funding programs your business fits with and apply for as many of these sources as possible. Small amounts can add up or be combined with other funding sources for maximum potential. Working with an advisor will also be helpful and can provide you with good strategies applicable both now and to long-term goals.

Next article: Personal Financial Information - A Requirement For Business Startups

Email this page to a friend

Featured Business Startup Product:

	Learn How To Start An Office Cleaning Business And Clean Up The Profits
	Learn how to make an extra $54,000 part-time in your first year running your own profitable office cleaning business. Office cleaning can be a very profitable money making opportunity. It's a real roll-up-your-sleeves moneymaker in every city and town .. Click here for more details ...

More Articles About Startup Capital ...

Government Grants - A Brief Guide
There is more to owning a business than just renting out a space and opening the doors for customers. It takes long hours and lots of work to make it a successful venture. Many businesses fail during the...

Start Up Capital - How Much Do You Need
It seems that everyone today is working on a shoestring budget. Many people decide that breaking into the business world with their own company might be a venture they're willing to try. Everyone knows...

Business Start Up Capital - Common Questions
You may have a great idea and have finally decided to take your dreams and make them a reality. Maybe you want to try your hand at owning your own business, or maybe you'd like to be your own boss. You...

Recommended Resources

Angel Investing: Matching Startup Funds with Startup Companies--A Guide for Entrepreneurs and Individual Investors

For the entrepreneur, angel investment is one of the best ways to secure the funding needed to transform a great idea into a competitive venture. For the investor, angel investing holds the promise of enormous financial returns. In fact, many successful companies were funded by angels-companies like Cisco, AOL, and Amazon.com. Some of our top business leaders have cashed out to become angels--leaders like Apple's John Sculley, Netscape's Jim Barksdale, and Microsoft's Paul Allen. Indeed, understanding angel investing is crucial for every entrepreneur and investor in today's marketplace. Angel Investing offers the first authoritative look at this emerging form of financing, complete with stories of the investors and companies that have led the way. It is also the only comprehensive guide for the entrepreneur seeking capital and the private investor looking for a better return on investments of $100,000 or more. Written by two veteran investors, Angel Investing is based on years of research, hands-on experience, and in-depth interviews with business angels, venture capitalists, and entrepreneurs. It gives readers an unprecedented overview of how business angels compare with their better-known counterparts, venture capitalists, covering everything from investment motivations to exit strategies. It provides the resources entrepreneurs need to secure angel investment for their growing companies. And it shows would-be angels how to buy into small firms with strong growth potential. Entrepreneurs will learn what angel investors look for in a startup, how to pitch their company successfully, and how to tap the billions of dollars that business angels invest in entrepreneurial firms each year. Would-be angels will learn how to connect with startups, what criteria to look for before committing their capital, and how to make their first investment in an entrepreneurial firm.

For more information about Business Startup-related resources, see our Business resources section, subscribe to our Business Newsletter containing news, updates and insider tips, or go to more articles about Capital For Minority Business Startup.

***