| CAPITAL FOR YOUR BUSINESS |
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Finance Your Small Business
Many women dream of starting their own businesses and gaining more control over their lives. And increasing numbers are now making that dream a reality. Between 1997 and 2004, the estimated growth rate in the number of women-owned firms was nearly twice that of all firms (17% vs. 9%), according to the Center for Women's Business Research (cfwbr.org).
So you've got the dream (and maybe even the plan) but where do you get the money? The CFWBR reports 56 percent of women owners of firms with $1 million or more in revenue are likely to use commercial credit for capital; 71 percent of men are. Women and men are equally likely to use business earnings for capital.
Check out these options and resources to find funding for your dream:
$OURCE$ OF CA$H
From "Success by the Book"
SAVINGS
pros: easy access; low cost
cons: no outside check on your plans
CREDIT CARDS
pros: easy access
cons: potentially very costly because of high interest rates
HOME EQUITY
pros: easy access
cons: if business fails, your home is at risk
FRIENDS + FAMILY
pros: no official scrutiny; low cost; no applications
cons: if business fails, you jeopardize personal relationships and others' finances; you also have to spend significant time educating and asking
LOANS WITH PERSONAL ASSETS AS COLLATERAL
pros: accessible
cons: if business fails, you might need to sell other assets to pay back the debt; debt is limited to your available assets
SMALL BUSINESS LOANS
pros: require you to have a strong business plan; interest rates sometimes attractive
cons: small amounts; often require personal guarantee
SALE OF EQUITY
(BRINGING IN PARTNERS OR VENTURE CAPITALISTS)
pros: potential source of significant capital; no interest expense
cons: giving away the future profits to others; likely loss of some control over your company
RESOURCES:
Angel Capital Education Foundation
angelcapitaleducation.org
A charitable organization devoted to education of angel investors and to collecting and disseminating data and information on angel investors and angel investing groups
Business Finance.com
businessfinance.com
Allows you to search 4000 + business loans and capital sources
Center for Women and Enterprise
cweboston.org
Provides education, training, technical assistance and access to capital to ensure that all women, regardless of their economic status, will have the opportunity to start and run their own businesses (offices in Boston, Worcester and Providence, RI)
Commerical Finance Online
CFOL.com
The world's largest finance search engine
Count-Me-In
count-me-in.org
Provides $500-$10,000 loans to women entrepreneurs
Microsoft's Online Resource Center
microsoft.com/smallbusiness/resources/articles/women-in-business.mspx
Links to dozens of articles for women entrepreneurs
Post Idea.com
postidea.com
Allows you to post your business plan and then pairs you with portfolio matching investors
Springboard Enterprises
springboardenterprises.org
A national non-profit organization accelerating women's access to the equity markets
U.S. Small Business Association
sba.gov/women
sba.gov/training/courses.html
sba.gov.financing
Provides loans and information to entrepreneurs and small businesses
Women-21.gov
women-21.gov
A premier one-stop federal resource for targeted information, registration for online programs and networking opportunities for women entrepreneurs
Women Entrepreneurs Inc.
we-inc.com
An organization dedicated to helping women entrepreneurs succeed through networking, educational programs and advocacy
