Show me the Money!

Unless you have a rich uncle that has left you a large inheritance, you will most likely need to look at your own bank account to find the money to start your business.  One of the biggest misconceptions for financing a business are that there is FREE government money available to start a business, especially in the form of a grant.   Unfortunately, the truth about grants and loans is that they are not readily available and even if you are able to get a loan, you are going to have to have to use your own resources.  The average entrepreneur needs about $20,000 (at least) of their own funds (borrowing from family & friends, maxing out credit cards, using personal savings) to get a business venture going.  If you think that you don’t need any cash on hand to get started, you may want to think again and run some financial projections.

According to an article by US Bank, “Getting a small business loan from a bank is difficult because start-ups are risky ventures and banks are not known for their risk taking.  That’s not to say that small business loans aren’t out there, just don’t hold your breath.  Grants from the government work similarly.  They’re hard to come by and the time it takes to search for them could be better spent working on the business itself.” With the tight credit market and tough economy, bootstrapping, or the process of starting a business without any outside financing, is becoming the only option for many entrepreneurs.  Do you have any advice for other entrepreneurs?

If you’re not familiar with the term ‘bootstrapping’, you may want to attend a short workshop on March 3rd to learn more about your options for financing a business.  This is the third workshop in the Yakima Valley Entrepreneur Network’s ‘Working Lunch Series’, presented in partnership with SCORE.   This class will focus on financing options for getting your business off the ground, how to prepare a loan package and the truth about grants and free money.  Workshops are taught by professionals with real-world business experience.

• Financing your Business, Wednesday, March 3rd, 2010.  11:30 a.m. to 1:00 p.m.

Held at the Central Washington Business Resource Center, 10 North 9th Street, Yakima 98901.  Classes are $10.00 each if you pre-register or $15.00 at the door and includes the price of lunch.  To register or for more information, call me at 509.575.1140 or email tammy@ycda.com.