Starting a business can be a daunting task, especially when you consider that the average startup costs are anywhere from $5,000 to $20,000. Even at the low end, that's not an insignificant amount of money. The good news is that hardly anybody starts their business out-of-pocket, unless of course they have that kind of disposable income. But for the rest of us, there are several options available.
A traditional loan from a bank would be a desirable avenue, but unfortunately many banks and credit unions are hesitant to finance home businesses under $100,000. Unless your business costs are legitimately this high, and you are able to pay back a loan of that magnitude, other funding must be determined.
A great place to start for any small business is www.sba.gov. The SBA is the Small Business Administration, and their website is a wealth of information regarding starting, funding and managing your business. Various loans and programs are available that are more tailored to a small business, as opposed to the banks which typically fund larger business ventures.
There are also various community funds. These are local groups that offer small amounts of money, usually under $1000, on a loan basis. They often require you to become a member of their organization, but they are a great way to get that last little bit of funding.
Another conceivable option is financing your business through a grant. While popular discourse would have you believe anybody can fund his/her venture through a grant, this may be a bit misleading. The truth is that the majority of business grants are available for strictly non-profit companies. However, there are some grants available for profit yielding businesses. A good resource for these types of grants is www.businessownersideacafe.com. However, remember that grants are often very competitive. You may be evaluated based upon a well thought out and presented business plan, and there may be upwards of tens of thousands of people applying for the same grant.
The last option is appealing to venture capital groups. As with banks, they are generally only interested in multi-million dollar businesses. Occasionally though, they will be willing to fund a small business. Known as "angel" investors, they often require frequent business reports or demand a high percentage of profits.
By whatever means you choose to finance your business, make sure it's a good fit for your company. And don't resort to out-of-pocket expenses unless you have to. There's plenty of money out there for you and your business. You just have to put in the time to find it.
For more information about funding your quilting
business go to http://www.creative-quilting.com
. I hope this information has helped you in deciding if a home quilting business
is for you. Michelle Frost Email me: [email protected]