Grant and Loan Resources

You have a great idea, the perfect location picked out, and you know you can make a lot of money from it, but how do you get a business loan to start your small business? Millions of people take the leap to become an entrepreneur and obtain the American dream. Before you do make sure you have everything in order — most importantly your finances.

While there are big profit potentials available by running your own business that could never be obtained as an employee, there are also some big risks. Particularly when starting out, things can be tough. Not only may you have to fore go your income, but there are expenses. So instead of making money like you are now, you are not only making $0, but you have start-up expenses.

Everyday people are able to successfully make this transition with the help of obtaining a small business loan. While some business may allow you to work part-time while you keep your day job, that’s not always the case. Even then, if you plan to start a brick-and-mortar business, you will have many thousands of dollars in expenses. If you are starting a home-based business, such as a consulting firm, you may be able to get away with high overhead and start-up costs.

If you’ve sat down and done the math, you know exactly how much savings and personal credit is available and how far that will take you. Maybe you’ve even thought about a home equity loan or line of credit in order to help you get to profitability. Whatever the case, there’s a good chance you’ll need additional financing for expenses you have yet to consider.

• Business licenses
• Legal Fees
• Advertising
• Payroll
• Website Development

These things may seems like minor expenses, but they all quickly add up to big bills at the end of the month. That’s where your small business loan or additional financing resources can help you.

One place to start is the obvious. Check with the bank you currently do business with. Banks like Chase and Bank of America have great programs for small businesses and can help you keep your expenses low. They will probably be happy to extend an initial line of credit to you in the form of a credit card. While this may not be much, you’ll want to use it responsibly in order to start building business credit as soon as possible.

Other than your bank, you can try approaching private investors (known as angels), who may be able to provide you with the financing you need for something in exchange. Generally they’ll want to thoroughly review your business plan and want some stake in ownership of your business.

Beyond your local bank, angels and your family & friends, you can also contact the SBA for information on other resources that may be available to you. They often provide a number of financial assistance programs, or can direct you to the organization that can.

Lastly, one option that many new business owners fail to recognize is the availability of small business grants. These are government and privately run programs that provide money to new and existing small business owners. Because of the positive economic affect it can have, there are many organizations that will provide financial assistance to individuals that have a sound business plan and potential for profitability. In the long run that means more tax income for your state, more competition, more jobs, and an ability for your community to attract more businesses. By partnering with the various grant programs that are available, a win-win situation can be achieved.

You may be the world’s greatest cook or have the best idea for a restaurant in your area, but finding money to star a restaurant business could be the hardest part of launching your new business. Depending on the type of restaurant you want to start, it could be a quite costly venture. But with the right location and the right clientele, you could produce quite a nice income for yourself and do what you enjoy doing most.

Finding Money to Start a Restaurant Business

When starting any kind of new venture, the typical financing resource are generally your own savings, finding friends and family to pitch in, and obtaining small business loans. If you do not have a history or experience in launching and growing a business, you may have a difficult time getting a loan from your bank. But with a convincing and a well thought out business plan, those funds can come through for you.

Putting together a thorough business plan is never a bad idea. You could join local entrepreneur meet-ups to discuss your idea with investors and potentially find private financing. The down side is that in exchange for providing you with start-up capital, investors and what are known as business angels will typically require some stake in ownership. In other words, by providing you with $100,000, they may want 10% ownership in your business and 25% of profits, for example.

The money needed to start a restaurant business would probably include:

• Furniture: tables, bar stools, TVs, a bar
• Place Settings: plates, silver, table cloths
• Equipment: ice machines, soda machines, dish washers
• Staff: chefs, weight staff, managers, hosts
• Food

While you can see that it can be quite costly to start a business, there is incredible potential for income. But because of the risks it can be difficult to find money to start a restaurant business. Especially if there is a lot of competition in your area.

Small business grant are another resource that may be able to help with start-up financing. While a small business grant for a restaurant business may not provide the 100% financing needed, it can reduce the amount of cash you do need to get started. In some cases, small business owners are able to obtain as much as $50,00 in free grant money that never has to be paid back.

With so many people making the transition from employee to entrepreneur every day, where are they finding the money to start a business? Not only does ditching your job mean losing your income, but starting a business in itself can take considerable financial risk. The rewards, on the other hand, of taking that leap of faith can far outweigh the risk.

By starting a business of your own, you take one giant step towards being your own boss, having the satisfaction of accomplishing something great, and potentially experiencing a life of financial freedom. It’s something that most people only dream of, while others may spend a lifetime trying to figure out what that perfect business opportunity or the next best-selling invention may be. Even then, once those individuals think they’ve found “it,” the majority never execute. Whether it is fear of taking such a big risk or being unable to find the money to start a business, many dreams are never sought out.

Those that believe they have the right plan, the guts, and the “can-do” attitude can make something more out of their lives that most people will never have an opportunity to experience. Now all you need is the money, which may not be as hard to find as you may think. Business-Know-How provides 10 ways to find money to start a business, but we’ll highlight some of the key methods here:

Take Baby Steps: You may be anxious to get your business off the ground and start producing profits as quickly as possible, but allow your business to grow organically. Things can take time and, if possible, it might be better to start on a part-time basis while you hang on as an employee as long as possible. Take advantage of health care and other benefits until you are able to produce profits without any help.

Apply for Business Credit: Using credit cards can be a bit risky, but many successful businesses were started by relying just on plastic. Most recommended forming a legal entity, such as a S-Corp or LLC, and opening credit in your business’ name. For one, you’ll begin to establish business credit right away, which can be helpful down the road. More importantly, your business credit is not associated with your personal finances, so should things not go your way at least your personal finances and credit history is protected.

Seek Personal Loans: The interesting thing about business is that the person with the right idea will never have trouble finding the money they need. If people believe in you, there will always be family members, friends and investors willing to give you a loan in order to help you succeed. Consider offering part ownership in your business to those who help you launch your entrepreneurial career, and spend some time joining small business networking groups to meet people with deep pockets who may be able to help you out.

Most importantly, don’t try to grow faster or purchase equipment that is not necessary. It could take two or more years before your business sees a profit and you’re able to comfortably provide yourself with a paycheck. Now is the time to be frugal and be selective where your money is being spent. Consider only those areas that will provide the biggest return on your dollar.

In today’s environment, just having a great idea is not enough. You need proper funding in order for your small business to succeed, and a business startup grant may be your ticket to prosperity.

While most business fail, it is not typically because of lack of interest in the product or service, or even poor management. The majority of failures are a result of not having adequate money to see the business through profitability. That leaves either trying to keep the business afloat by borrowing money, tapping into additional resources, or seeking alternative financing options.

However, what most new small business owners fail to realize is that there are small business startup grant programs available to help individuals make the transition from employee to entrepreneur. Obtaining small business loans with a new business without any track record of entrepreneurial success can be extremely difficult. Lenders are just not wiling to take a chance.

The government, various private foundations and special interest groups are willing to help people get off the ground running on the right foot. By applying for and obtaining a business startup grant, everyday people can get the money they need to launch their new venture.

• Get Cash for New Office Equipment
• Find Money to Hire Employees
• Down Payment Assistance for Office Space

Beyond making it easier for individuals to receive financing for their new business, these startup grant funds have a number of other benefits. For instance, a traditional bank loan must be repaid regardless of the success of your endeavor — unless of course you file for bankruptcy.

With a business start up grant, however, the money never has to be repaid… even if your business fails. That removes some of the financial risk in taking the leap as a small business owner. In addition, a business startup grant can be obtained regardless of credit, without collateral or a cosigner.

While the institution providing the grant will want to see confidence and proof that you can eventually make your venture profitable without the financial aid, business startup grants are available for those who are ready to take the next step in securing their financial future by being their own boss.