LOGIN HERE  | HOURS & DIRECTIONS | SEARCH WEBSITE | SITE INDEX | MY ACCOUNT |
|
|
||||||||
|
|||||||||
|
Financing Your Business  a Reference Site of DiversityBusiness.com
It is not an easy task to raise funds, whether you are doing it for your business or for a nonprofit organization. It takes time to prepare and no small amount of perseverence to present your case, in person, to some potential investor or lender. On the Internet, you can get some free advice and guidance, along with lists of firms which stand ready to serve you (and their own interests). You can "advertise" your need for financing, or you can make your pitch directly to a venture capital firm or other financial institution.
A. Business Plans and the Credit ProcessThe Federal Reserve Bank of New York has written a comprehensive document entitled The Credit Process: A Guide for Small Business Owners with sections on what lenders expect to see in a business plan. Other sites offering help with business plans include:
Frederick Pearce shares some creative ideas for financing via his Raise Money for your Business Without Asking Your Bank Manager webpage. Some useful books are:
The Entrepreneur's Guide to Writing Business Plans and Proposals, by K. Dennis Chambers. Praeger, 2008.
The Ernst & Young Business Plan Guide, by Brian R. Ford, Jay M. Bornstein, and Patrick T. Pruitt.
How to Write a Business Plan, by Mike McKeever. Nolo, 2007.
Anatomy of a Business Plan : A Step-By-Step Guide to Starting Smart, Building the Business and Securing your Company's Future, by Linda Pinson. Dearborn, 2001.
Business Plans Handbook. Multiple volumes. Gale Research, 1995- .
Entrepreneur Group's business start-up manuals This large set has business plans for specific types of small businesses. 
B. Banks and other Financial InstitutionsIf you choose to consider a banker, here are a couple of Web-based directories; more may be found on the Banks and Financial Services Research Guide. For loans from the federal government, search GovLoans.gov. And there's Financial Assistance from the U.S. Small Business Administration, through loan guarantees and workshops.
In New Jersey, Financing & Incentives are available from the New Jersey Economic Development Authority. You can also consult the New Jersey Directory of Economic Development Organizations to locate an economic development corporation in your city or county. C. MicrofinanceSome financial institutions and non-profit organizations are prepared to provide funding to start-ups with little collateral or limited credit history. Start by browsing the resources of the Association for Enterprise Opportunity, "the national association of organizations committed to microenterprise development," including a listing of microlenders by state.
Some notable organizations include:
Microfinance has also gone online, with individual lenders being matched with individual borrowers, sometimes within a particular social network. Some examples:
D. Venture CapitalOne new resource to explore is the Venture Capital Database from Chrysalis Ventures. Venture Capital Links from The Capital Connection provides links to dozens of venture capital firms, as well as to several free services. There are also many companies listed at the Venture Capital Resource Library. This site also allows you to post your investment opportunity (or read someone else's business plan). Yet another directory of firms is Envista's Private Equity Links. And you can find out which regions and what industries have received investor interest, in the quarterly PriceWaterhouseCoopers Money Tree Survey of the venture capital community.
The most comprehensive directory of venture capital firms is Pratt's Guide to Private Equity Sources (formerly Pratt's Guide to Venture Capital Sources). Other titles include:
Directory Of Venture Capital and Private Equity Firms: Domestic & International. Grey House, 2006.
Directory Of Venture Capital. John Wiley, 2002. "Angel investors" are another source of potential funding. Members and affiliates of the Angel Capital Association are listed on the Directory of Angel Organizations. And to learn more about private equity, visit the Library and browse a selection of articles and case studies from ISIS Equity Partners.
E. Direct Public OfferingsYou can also raise capital by making a direct public offering of your shares to your customers, distributors, and other affinity groups. Pros and cons are discussed in this Direct Public Offering overview from GoPublicToday.com. Take a Screen Test for a Direct Public Offering from Drew Field Direct Public Offerings to determine if your company is a good candidate. F. Other SourcesOne creative approach is using Factors as a Source of Working Capital for your Business, where cash is advanced against your Credit Card Receivables. A couple of firms offering this service are: FastUpFront.com and Merchant Capital Source. Others may be found at the International Factoring Association. (NB "credit card factoring" has a second meaning - it is a felony in certain states.) Business Owner's Idea Cafe has a section called Financing Your Biz. You can also search for different sources of Commercial Finance besides advances and factoring. Other free tips may be found by going through the following:
And you can search the Catalog of Federal Domestic Assistance for information on government programs.
| |||
|
|
|||
|
|
||||
