Forums: Discussions for entrepreneurs and small business.

Hi - I am planning on launching a web based business geared towards women.  I am wondering if someone can pinpoint the best place to START looking for funding....a womens based business grant, small business loan, dare I say - angel investor? Is there a place on the web...that any of you like as a resource?  There seems to be a huge amount of info, and I want to try to narrow it down to something that is recommended.

Rachel1,

There are a number of ways to bring capital into a company. There really isn't one right or best way.  The key to success is to choose the optimum way for you, the business and your circumstances.

Selecting your optimum path to capital should consider several factors beginning with how much  capital is required -both now and in the future.

1. If there are grants for women based startups - they will likely be relatively small amounts and offered on a local basis.

2. Generally, loans from institutions (banks,etc) will require you to have a good personal credit record and may require you to pledge significant collateral.

3. Investors are a possibility but consider:

         a. Most professional angels invest in an industry that they "know" and usually with a company that is geographically close.

        b. While there are a number of sites which offer the opportunity to post your request for capital - in the 10 years I've been working with early stage companies, I've yet to encounter anyone who has actually received a check from a capital source that found them on one of these sites.

      c. Before actively seeking capital, you should familiarize yourself with the key regulations and "traditions" of this arena. Being prepared (I call it Capital Ready) will greatly improve your chances of success and help you avoid the pitfalls.

If you would like to discuss your situation, feel free to send me a Pm or contact me directly.

Robertj

Rachel1,

When seeking investors, think about private individuals.  There is an enormous amount of money in IRA's today.  Individuals could use that money to fund your business.  By placing thier money into a Self Directed IRA with My Retirement Account Services, (www.getmyra.com) they could then elect to make a capital investment in your company.  GREAT concept for our nations small businesses.  Look us up, we are glad to tell you more about how it works. 

thanks,

BizCapitalGuy

You should start by identifying your needs.  What do you need the funds for and how much for each.  Most lenders or investors will want to know this specifically.

If seeking equipment, look to an equipment lender.  If seeking working capital, then search for a working capital lender, etc.

I would suggest that you start with your bank - but, do know that most banks will not lend to start-ups unless you have other cash flow and/or strong collateral.

Our site is designed to help people just like you.  There is no cost to view our site and as always no obligations.  Our site is a business loan portal designed to help explain loan options and legitimate resource for such.

Well we are looking for $250,000 for working capital purposes

Rachel1,

As many of the respondents in this thread have pointed out, when a business owner seeks outside capital, they need to provide specific information that will assist the lender to identify you and your loan request as viable.

Lender requirements are stipulating that you provide collateral as was as strong financials/credit to show that you can repay their loan. As a start up, don't even look at the banks if you personally don't have any assets they can consider.

Another note, do not request funding for Working Capital or to pay salary. Lenders want to know that you are not just going to have their money sitting and not putting it to good use.

TO CHAM:

Lenders do not lend money just for working capital. You must have a need for equipment, machinery, real estate, expansion, etc... And they certainly will not finance you if you are going to pay yourself a salary.

Contact me if you think I can be of more assistance to either of you.

Karlene Sinclair-Robinson

"Queen of Business Financing"