These organizations can help budding entrepreneurs on creating a business plan and financial projections, provide educational seminars on small business, management or financing a business, and link the entrepreneur to local resources to help grow the business.

This post will focus on US organizations; we will expand to other countries in the following posts.

Small Business Administration, the destination for entrepreneurs looking for information on how to obtain small business loans, news about entrepreneurship, information on contracting and procurement, counseling and training programs

In the last couple of years the SBA website has improved dramatically in terms or organization and information. Making the wealth of info easy to use and targeted to your region.

Small Business Development Centers. This organization acts as the training and counseling arm of the SBA. The SBDCs are located in all 50 states may operate in a university. This structure helps the sbdc to act as a business lab for students and entrepreneurs looking for ideas on starting or managing an existing business.

Services that you can obtain there are counseling with an expert technical advisor on topics such as marketing, accounting, creating a business plan, etc.

Counselors work with hundreds of businesses a year, making them an invaluable resource for entrepreneurs.

Make the most out your visit. SBDC counselors see a fair amount of start-ups without a clear idea what their business is going to be and how it is going to make money. Do a little research on the industry, competition, etc.

Don’t know how to do business research? Don’t worry, in the following posts we will provide you with a guideline on how to research a business opportunity.

If you are ready to obtain a business loan, a counselor can help you create a financial projection and match you with lenders looking to lend to small businesses.

Women Business Centers, they provide services similar to the Small Business Development Center but with a focus on women entrepreneurs, particularly for women whom circumstances places them on socially or economically disadvantaged situation. They offer comprehensive training and counseling to help create and manage a business.

Score is a nonprofit association with over 11 thousand business counselors. In here you can obtain expert advice from counselors with business experience that may have faced the same challenges that you are facing right now in your business. Use this website to find a local score in your area, ask a question to a counselor, or try the free online workshop.

These are the basic organization to help you in your journey to entrepreneurship.

Bonus website, looking for capital? There is a list of angel groups available. (Note, we would advise to work with a SBDC, WBC or Score counselor before approaching these organizations). However, if you have a sound business model and experience in your field then try the www.angelcapitalassociation.org for a list of angel capital groups in your area.

It is about dedication It is about energy It is about having the ability to get the job done

You should not think too much about how much money your new job needs. If the lender/ investor are sold, you will have the money. Its starting may change your life for the better with proven ideas on successful of it, practical guidance on how to incorporate it, partnerships and a run-down of financing options and etc.

There are so many business investors, all sources for its financing are: Small Business Administration, banks, and private angel investors, strategic alliances, leasing companies, venture capital investors, MESBICs, SBICs, credit union coalitions and other more. But there never seem to be enough funding sources when a company is seeking financing.

Investors business responds to its plans that meet their needs and specifications; they ignore all the other plans. Your plan must have investors identified before ever written. It does not matter how great a company is, if it does not fit the parameters of standard funding sources, loans and grants will be out of reach.

What is the Startup Strategy?

There are major points to consider:

1) Define your Business and Vision

What business are you in? Who is the customer? What do you sell (product/service)? What is your primary benefit? What is your plan for growth?

2) Write down your Goals

3) Understand your Customer

4) Learn from your Competition

What competitors do you have? What do you know about your target market? How are competitors approaching the market? How can you improve upon the competition’s approach? What are the competitor’s weaknesses and strengths? What are the lifestyles, demographics and psychographics of your ideal customer?

5) Financial Matters

Assumptions Start up Investment Running Monthly Overhead Cumulative Cash Streamlined Sales Forecast Break-even

6) Identify your Marketing Strategy

Identify All Target Markets Qualify the Best Target Markets Identify Tools, Strategies and Methods Test Marketing Strategy and Tools

I hope you have got your all the answers.

These numbers are not made up. They are actual numbers from actual reported venture capital funding. I get these notices emailed to me day after day, rain or shine.

I’m not personally looking for business financing – but the entrepreneurs who read my website are. These numbers are a constant reminder to me that companies – lots of companies – are getting funded every day.

And these numbers just reflect the reported venture capital funding. There is probably double that amount from angel investment and unreported fundings, and millions more from the $16 billion pool that SBA has this year.

All in all, it’s a lot of money. That’s a lot of companies and banks and groups and individuals actively investing in small business.

So how come you’re still looking for financing?

Perhaps you aren’t presenting your company effectively.

Or perhaps you haven’t located the right lender.

It’s also possible that your concept just isn’t very good, but I doubt that. The fact that you are reading this article means you are a serious entrepreneur, with a serious business.

So where do you go to find all these investors? Here are some starting points:

For standard business financing, talk with the local office of the Small Business Administration. It’s a new agency, with new programs and services, and lots of money to lend. Although much of the focus of the SBA is on minority business enterprises, the SBA still has a lot to offer non-minority companies.

Also talk with your local banks. (That was plural “banks”, not “bank”.) Talking with a number of local bankers will rapidly bring into focus the wide ranging priorities of the various banks, and where your company fit in.

As for venture capital and angel investors, there are several options.

One option is to go to online sources. There are a number of online services, such as VFinance, that sell the names and addresses of possible investors. It’s not expensive, perhaps $2-5 per name. The idea is that once you get the list of 200 or 2,000 names in hand that you will contact each with a written executive summary or business plan, and then wait to hear from one of them. This is a very passive approach, roughly akin to throwing paint on the wall and hoping that something will stick. If you are like most entrepreneurs, patience is not your strong suit, so sitting and waiting for a response is not quite your cup of tea.

Another option is to go to one of the many directories of venture capital firms. These directories typically include addresses, phone numbers and emails, along with the geographical areas of interest and the types of investment that each is seeking. Most businesses can narrow down their list of prospective investors to several hundred venture capital firms this way. And again you are faced with the prospect of sending out written material for each one, and waiting for a response.

A third option is to take a more proactive approach. Identify your best prospects yourself from a number of reliable sources. Get introductions where possible. Learn everything you can about your target investors, and then go after it. Typically a phone call is the first contact, not an anonymous executive summary. Knowing that you are calling your best prospects, you know too that they are open to hearing from you. You have names, you have investment histories, you have everything in hand to make a real connection with the target investors. Then go do it.

Getting your company financed is one of the hardest things you will ever do as an entrepreneur. It can be hugely frustrating, disappointing and genuinely discouraging. But lots of entrepreneurs do it. And so can you. Get the Nos out of the way and go for Yes! The exhilaration of the handshake sealing the deal is unlike any other transaction in business.

No one knows when this amazing window of financial opportunity is going to close. Spiffy up your business plan and go for it. Now.

Author: MaryAnn Shank
Article Source: EzineArticles.com
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How can you raise start up capital? There are a few ways to go about it:

Small Business Bank Loans

Many financial institutions provide some type of small business loan program. In order to get funding from a bank for your small business, you will need a solid business plan. You’ll have to prove that your business will generate enough cash to make the loan payments. Each bank’s requirements are different but if you are able to articulate how you will succeed, have decent credit, and possibly a co-signer, you may be able to secure a small business bank loan.

SBA (Small Business Administration)

The SBA is a great resource that provides information on requirements, credit factors, how to apply for loans, etc. The web site is a good starting point before attempting to apply at a bank. The better prepared you are, the easier it will be when you begin the application process.

Family & Friends

A lot of small businesses raise start up capital this way. Family and friends usually want you to succeed and believe in your business. It is wise to treat these relationships as real business relationships. Plan how you will repay their loans, the time frame, and at what interest rate.

Angel Investors & Venture Capital Firms

Private angel investors and venture capital firms work primarily in the same way. They invest in the equity of your business and expect a return in the form of an acquisition, IPO, or stock buy back in the future.

The key to any of the above methods is to have a well written business plan. A good business plan will prove that you are serious about your business and that you can demonstrate the way you plan on making it successful.

Author: Eartha Haines
Article Source: EzineArticles.com
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photo credit: Valdo Raps

Its no secret most entrepreneurs have limited resources as it pertains to how and where to secure capital infusion. It is these limitations, which precludes small businesses from moving past level one in business and on to a more lucrative future.

There are numerous loan programs and lending institutions servicing small business owner’s nationwide. The problem is not getting the money, it’s how and where to find it. If more business owners knew how and where to secure capital, there would be a larger number of businesses growing and succeeding than those that are dissolving-today.

When our government enacted laws and policies to protect and support our economic system, which is the mainstream source for derived goods and services supplied by the business community, it included providing capital infusion to businesses for the continuity of our economy’s stability and growth. Today there are various resource centers, which provide an array of business development services such as the Small Business Development Centers (SBDC), Service Corps of Retired Executives (SCORE), Women Business Centers (WBC), and Veteran Business Opportunity Centers (VBOC). Take advantage of them, they can be viable to the success of your business.

First things first- you must do your research. You should know: the different types of lenders; what loan programs they offer; how much they will lend you and what is their criteria; what other financing options are available to you and what are their lending policies.

To get you started. There are four types of lenders (1) Traditional Lenders- larger chain banks; strict criteria; larger loans; preferred SBA lender, (2) Third-Party Lenders- community sub-lenders which offer smaller loans and partner with traditional lenders to process loans ranging from $100,000 to Millions, (3) Private Lenders- provides in house financing, offer smaller loans; lower interest rates; flexible criteria and accommodates start-ups, and (4) Investors- require a higher interest rate on their return; part ownership of the business; some will provide management support and have access to viable resources.
It’s very important to know whom you are asking money from. It’s like the term we use “know your competitors inside and out”, well the same principle applies here. Why? to compare financial products that best accommodates your needs. You want to secure the best deal at the best rate. I always recommend my clients prepare a Where’s The Money Strategy. Having this kind of strategy helps you identify your financial need, compare loan products, determine which lender best suits your need and which lender offers the best deal.

Now you might be saying, “there’s no money available, lenders are not issuing credit to anyone right now”, yes there are still some cash flowing lenders out there. Traditional lenders might have tightened their reigns, however private lenders, local community banks and some third-party lenders are still in the business of lending money. Although we are currently in an economic downturn, they have not been inflected in such away as the traditional banking institutions, which allow these lenders to remain strong and more vital to the business community.

Did you know the Small Business Administration has loan programs designed to meet the financial needs of all aspects of the business industry ranging from $5,000 to Millions? There are six programs used widely to address these needs. The Community Express Loan, Patriots Express Loan, SBA Express Loan, and CAP Lines which is an umbrella of five additional programs (1. Seasonal Line of Credit, 2. Contract Loan Program, 3. Builders Line Program, 4. Small Asset Based Line (SABL), and 5. Standard Asset Based Line. Then there are the two most common loans 7a and 504.

I recommend contacting your local VDEC center and visiting the Jewish Free Loan Associations website www.jfla.org and Accion at www.accion.com, if you are in need of a small capital infusion- $15,000-$25,000 today.

As a business strategist for many years, working with small businesses and lenders, I’ve discovered faults and weaknesses of the lending industry, which has made the borrowing process for minorities and women challenging. In my new book “Where’s The Money? Accessing Capital”, outlines specifics about how and where to secure capital infusion for start-ups and existing businesses.

Visit my website to learn more about the Wade Institute http://www.wadeinstitute.org and my ebookstore for newly released books http://store.wadeinstitute.org

Market your business
Build a client base
Pay bills for operational expenses

To tie over these regular expenses, you may need much more capital than what you have in your account.

In such cases, there are several sources that can fund new small companies. However, seeking and securing cash requires:

In-depth and cautious research
Excellent negotiation skills
Persistent commitment to your new business

Sources of Start Up Capital for Small Business

Sourcing start up capital for small business is among the most daunting tasks for new entrepreneurs. Most entrepreneurs find money through banks, private investors, suppliers, customers or professional angel investors. The source is dependent on the manner in which you want to raise the funds and pay it back.

Banks: They are a direct source of funds. Several banks offer loans to small businesses that are already operational. However, you will need a business plan and a personal guarantee to convince the bank of your venture. Since the funds are given as a loan, you must generate substantial cash to payback these loans. You can find banks through the yellow pages or via the Internet.

Government: The government also assists in the survival of small businesses by providing them with various grants through the Small Business Administration (SBA). However, these grants are highly competitive and have strict rules about money usage. Moreover, there is no guarantee that you will receive a grant, so you need to keep other options open. Government agencies can also help you with the legal and administrative aspects of starting the business.

Friends and family: The most common source of funds for entrepreneurs is a group of friends and family. However, you must treat these investors as business relationships and reveal the use of money. You should also show the manner in which you intend to repay the funds. You may decide to pay interest or make them your partner in business.

Loan: You can borrow against your 401(K) plan. Alternatively, you can get a loan against your home. However, you might lose your home if the business fails. Use this option only if you are assured of the success of your business.

Insurance policy loan: You can receive up to 90% of the cash value. Your policy remains in place as long as you pay your premiums on time.

Strategic investors: Suppliers and customers may also decide to back your business. If your product or service complements that of your supplier, they might invest. However, accepting funding from a supplier might prevent you from using the supplier’s competitors.

Private angel investors: These investors are similar to professional venture capitalist firms. You need to convince them of the viability of your business plan. These angel investors expect a return in the form of IPO, acquisition or stock buyback over the period of three to seven years.

Author: Carrie Langstroth
Article Source: EzineArticles.com
Provided by: Cool mobile gadgets

Business micro loans are one source for getting working capital. These are smaller loans, which are typically between $5,000 and $35,000, and are targeted to startups and newly established small businesses. This program is established by the Small Business Administration. Non-profit community lenders are given the money by the SBA, and they make the decisions on who gets the loans. Micro loans have terms of up to six years, and requirements by lenders vary. If you decide to get a micro loan be prepared with collateral, and also be prepared to personally guarantee the loan. Specific training and business planning requirements must be fulfilled before a micro loan will be accepted as well.

Credit card receipt advances, also known as merchant advances, is a fairly new, but effective method for obtaining working capital. This method allows for an immediate cash injection because the lending source will buy your future credit card receipts in the form of a cash advance. The great thing about this option is that you can apply with poor or under established personal or business credit. The requirement is that your business processes a minimum of $2,500 per month. After meeting that requirement your business will be advanced up to $100,000. The amount that you can receive is established from current sales receipts. A small percentage will be deducted from your ongoing credit card receipts, and there are no fixed payments or fixed repayment terms.

Working capital can also be obtained by selling your account receivables. There are many advantages to this option including not having to give up equity, you can purchase in volume from suppliers, you can eliminate bad debt, and there is no additional debt accrued because selling account receivables is not considered a loan.

Business credit cards give you another option for obtaining working capital, and they provide your business with a great amount of flexibility. You can track employee expenses, smooth out the process of cash advances, you can reduce some operating expenses, maximize the potential of cash flow, and they can also help businesses with their vendor relationships. Make sure that when you are looking at a business credit card that it reports to the Small Business Financial Exchange. This ensures that the card will help build up your business credit scores so you can secure larger loans down the road. If the business credit card is not reporting, you won’t be gaining all of the benefits you can out of your business credit cards.

The equity loan allows businesses to obtain working capital through investment banks that provide capital secured by the equity or ownership of shares in a company. Companies that typically get this form of loans are in a market that is growing quickly, or they have established a niche for themselves. An equity loan is typically between $1 Million and $2 Million dollars initially with the potential of the loan being more over the life of the loan.

There are many other options for financing a business, and so it is recommended that you find a business capital search engine online to make sure you find all of the financing options for your business.

Author: Corey Pierce
Article Source: EzineArticles.com
Provided by: Programmable Multi-cooker

photo credit: HowdeeDoodat

As the economy continues to face credit challenges, small businesses, especially new, start-up companies are finding it even more difficult to find the capital they need to take their ideas and concepts and turn them into viable businesses.

Private equity firms and angel groups are no longer actively seeking new investments. They are more concerned with preserving and protecting their current portfolios. Further, private investors, like your neighbor or local doctors, accounts, lawyers, are not investing in local companies as their investments and retirement portfolios (usually the main source of their investment capital) have taken such large hits that any new investments are just out of the question.

Bootstrapping, by far the greatest source of capital for new businesses, is drying up fast. Credit card issuers and backers are pulling programs, tightening approvals and reducing limits. Friends and families are struggling just to survive themselves and do not have the disposable income to investment in your company.

Taking loans from retirement accounts are nearly impossible today as the market values of these assets have drop so dramatically over the last two quarters. There just isn’t the value there to take a loan against.

SBA backed loans remain just a difficult and costly to obtain as always. These loans still need to be underwritten by traditional lenders who are not making any loans at all as well as be underwritten by the SBA who has followed the banks’ course in tightening standards.

So, what are new, small businesses to do?

A few suggestions are as follows:

First, start smaller and work your way up. Small scale operations mean smaller capital needs. Thus, the small amount of capital a new entrepreneur does have (savings, home equity, retirement plans) can be used to jump start a business if it is designed on a smaller scale.

Micro-Loans: Micro-loans are loans for small organizations or start-up companies that do not qualify for regular loan facilities. These loans usually range from $500 to $25,000 and take up to five weeks for approval and funding.

Personal Loans: There are still a few companies that make personal loans from $10,000 to $100,000 provided the borrower has excellent (and I mean excellent) credit and a demonstrated ability to make the loan payments.

Asset Based Facilities: If your business has some proven track record, even if it is just for a few months, and has generated some financial assets like accounts receivables or credit card receipts, you may qualify for capital against those assets.

Account Receivable Factoring can help speed up your cash flow while you wait for your customers to pay you. You can then access working capital that can be used to generate new business, cover current liabilities obligations, or make payroll. There are companies that will factor receivables as low as $200.

Included with Accounts Receivable Factoring is Purchase Order Financing. If your business has an order to be filled but does not have the money to complete the order (e.g. buy supplies or equipment or hire needed labor) Purchase Order financiers will provide the funds needed based on that order.

Business Cash Advances, while not really a loan, can provide working capital against FUTURE credit card sales. The funds can be use for any purpose and could provide the capital your business needs to get it through these troubled times.

Equipment: Do you own some equipment outright? If so, you can sale that equipment (including tools and machinery) to a leasing company. Then, lease the equipment back from the lessor. You get the cash you need now and still benefit from possible tax deductions of the lease payments and other costs.

Where there is a will, there is always a way. These may not be the cheapest financial products in the market but for most business owners and start-ups, these may be the only option.

When seeking capital in this market, try to keep in mind that it is only temporary. The markets will turn around and lending standard will loosen. So, what you seek now should only suffice enough to get your new, start-up business through this down period.

Joseph Lizio holds a MBA in Finance and is founder and owner of http://www.businessmoneytoday.com. Also, visit his blog at http://businessmoneytoday.blogspot.com/

BusinessMoneyToday.com is a single portal in which business owners can easily find and obtain non-traditional financing for their business. YOU search for the products YOU need and select the lender or financial provider YOU want to work with. Remember, BusinessMoneyToday.com only works with money providers who WANT TO WORK WITH YOU!

photo credit: David Boyle in DC

We’ve all seen the hype: “We’ll put your plan in front of thousands of investors!” “We’ll write you an award-winning online business plan!” “Only $3,000 for thousands of investors to learn about your company!”

I cringe every time I see one of these ads. Vultures are preying on honest business people who want to fund their businesses. Here are some ways to spot them:

1. “Only qualified investors see your business plan.” Yeah, sure. And who “qualifies” them? Have a friend try to sign up as an investor (that part is usually free). How is she “qualified”? Is there a background check? Does she submit a financial statement? Odds are that she will be asked to do nothing more than sign a statement that she has a certain net worth. That’s no “qualification” in my book. So who are these “investors”? Who knows. One could be your strongest competitor.

2. “You approve anyone who sees your business plan.” Okay. So what are you going to do to qualify the potential investor? Are you going to run a background check? ask for ID? ask for tax returns? or just be so happy that anyone wants to see your business plan that you jump on the idea? (That’s how these scams get away with charging thousands of dollars — too many entrepreneurs are desperate for funding.)

3. “It’s only $500 (or $300 or $100) to register.” What does it matter if it’s free? If it is diverting your time and energy and resources away from finding a viable investor, it’s not worth it.

4. “Your idea is great, but we need to put it into our format. This will only cost $800.” Don’t walk — run from these guys.

5. “Your idea is so great that we want to invest $2,000 in it.” (That’s after you spend $5,000 to put it into “their” system.) Do I really need to comment on this?

6. “Talk with a satisfied customer, or 2 or 3.” Here’s this entrepreneur who just got $2 million in funding, and he has nothing better to do than sell the web scam to you? Trust me, entrepreneurs who just get funded barely have time to eat, let alone talk.

7. “Look at all these written testimonials.” This is harder to disprove because the testimonials look so real — even the companies might be real. But unless the testimonials, and the companies, can be verified independently, I wouldn’t trust them. And I’ll lay odds that they cannot be verified independently.

There is one huge exception to this: ACE-Net (http://activecapital.org). This is more properly the Access to Capital Electronic Network run by venture capitalists, institutional investors and individual accredited investors. It was developed by the U.S. Small Business Administration’s Office of Advocacy to encourage the creation of a national marketplace for investors to find and invest in equity offers by small companies.

ACE-Net isn’t for all companies. Those seeking under $1 million will probably find the paperwork daunting. Those seeking over $5 million won’t qualify. There are special qualifications, and of course lots of forms to fill out — but nothing like the forms required for a formal initial public offering.

But for those who do qualify, it’s an amazing tool in raising financing. Spend some time with the website and the forms, and see if your local SBA office can put you in touch with another company that went through the process.

As with any investor tool, don’t rely exclusively on ACE-Net. Use it in conjunction with your personally developed targeted funding search. This, combined with an exceptional business plan, doesn’t guarantee success but it places your company head and shoulders above all the rest.

MaryAnn Shank

http://www.businessplanmaster.com/investors.html; http://businessplanmaster.blogspot.com

Ms. Shank is a seasoned business financing specialist.