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5 Things You Should Know about Small Business Financing For Women

Tue, Nov 2, 2010

Management

Taking advantage of new opportunities is crucial when you are starting up your own business. Finding grants and funding is also imperative. When you are establishing a woman-owned business, there are many resources out there to help you get your ideas off the ground.

1. Know what type of loan you need

Figuring out how much money you are going to need, what it is going to be spent on and whether you qualify for any grant programs is the very first step to take. The bank is not the only place to go to get a loan. Whether you have saved some of the money yourself, or you will be relying primarily on other types of funding, knowing what might suit your business best is important.

To read about the different types of loans, you can visit The Small Business Center, which offers information about specific grants. One type of grant offered is the 7(m) Microloan program which can offer up to $35,000 for not-for-profit childcare centers.

2. Find loans to fit your plans

Whether you are starting a childcare center or a pet grooming business, there are specific loans for your type of business. The Small Business Center also discusses Energy & Conservation loans and CommunityExpress loans. The energy loan is for a business that is involved with doing something to conserve the nation’s energy resources. The CommunityExpress loan is ‘designed to spur economic development and job creation in untapped rural and inner city communities by providing small business loans in low and moderate income urban and rural areas,’ according to The Small Business Center.

3. It’s all about who you know

If loans don’t appeal to you, remember the old adage: ‘it’s all about who you know.’ This statement is very true in business. Who you know might end up helping jumpstart your ideas. Ask around and let your friends and family know about your business idea. You never know who might be interested in investing money or resources into your start-up.

4. Get involved in networking groups for women

Connect with other women who have similar ideas and who are starting up their own companies. You might learn a few things about your business and meet some friends along the way. Try The National Association of Women Business Owners to find a chapter near your home.

5. Know what you are up against

Knowing the statistics about woman-owned businesses and their success rates is important for predicting whether your ideas will survive the first year.

The Guardian Life Small Business Research Institute released a survey that details the changes happening. ‘Guardian’s research shows that by 2018 women entrepreneurs will be responsible for creating between 5 million and 5.5 million new jobs nationwide,’ a Smallbiztrends.com report said.

 By Kelly McLendon. Kelly is studying Environmental Affairs and Journalism. She can be reached at mclendon.kelly@gmail.com.

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