Once you have worked on creating a business plan that outlines what exactly your business idea is and how it will turn a profit, it is now time to head out and get the funding to get things started. There are several options to find funding for your business. However, it is important to look beyond angel investors and bank loans to alternative financing options. There are a number of resources available to entrepreneurs that can drastically increase your chances of funding your business idea.
The Association for Enterprise Opportunity (AEO) is an organization that is focused on developing microenterprises in the United States. They do this through their national membership organization and their support of undeserved entrepreneurs in starting, stabilizing, and expanding their businesses. They believe that every entrepreneur has the ability to create wealth, assets and healthy communities. As an AEO member, you are exposed to over 400 non-profit organizations across the country that provide capital and services to micro and small businesses. In order to join this network you need to sign up on their website and pay a membership fee. Other information that can be found on this site is news articles that are related to AEO’s initiative, along with a search tool that links you with local AEO members (http://www.aeoworks.org).
The Community Development Venture Capital Alliance (CDVCA) is the network that specializes in community development venture capital investing. This type of funding provides capital to businesses that are in neglected markets, with the goal of creating jobs, wealth, and entrepreneurial capacity. The CDVCA has their own source of capital known as the Central Fund, which allows them to invest in untapped markets where they see potential. The CDVCA network membership is open to all organizations and individuals and requires that you participate in the work of CDVCA, assist with CDVCA’s data collection efforts, and that you pay $500 in annual dues. Several benefits that come along with the membership include special discounts and information about the industry. The CDVCA website is also a good place to look for news about venture capital (http://www.cdvca.org).
There are many advantages and disadvantages of using alternative financing to fund your business idea. Some of the advantages are that these websites are very specific about what type of funding they provide and what type of businesses they are looking to distribute that funding. Also, the investors who use these websites are all centrally located therefore you are not limiting yourself to one investor at a time. However, a disadvantage to these type organizations is that they usually require that you become a member and pay dues. Even though it is helpful that you know what type of businesses they are looking for, it may work to your disadvantage if your business doesn’t fall into that category.
They are a lot of resources out there for individuals who are searching for ways to fund their business ideas. It is important to keep an open mind and look into these alternative-financing organizations. With the way the economy is today, it may be difficult to find funding. However, if you find the right organization that focuses on the type of business you are looking to open, you are increasing your chances of finding someone who is willing to help you make your dream come true.
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