Access to Capital
As you navigate business financing, it may be tempting to use your personal finances to help out when your business needs a boost, but that is not always the best solution in the long run. Separating your personal and business finances can help ensure you treat your business like the independent entity it is, while safeguarding your personal finances.
Acquiring the necessary expertise to successfully run a business in any industry takes time. Without the proper guidance, the trial and error method is costly in terms of time, capital and other resources. The launch of a mentorship initiative between the US Department of Agriculture (USDA) and SCORE will support new farmers and ranchers so they can avoid these mistakes. The announcement was part of the National Farmers Market Week, which will be running from August 6 to 12.
Many small businesses involve food. The baker, the butcher, the coffeecake maker and the farmer-in-the-dell are all likely to be small businesses.
But as small businesses, most of these food-related companies have the same problem: how do their owners get the cash they need to buy supplies before they actually make sales?
For most businesses there are two types of financing: debt and equity. Debt financing is a loan. The lender gives you money and you promise to pay it back with interest—the cost of borrowing the money. Equity funding means selling a piece of your business. An investor gives you money in exchange for owning a piece of your company.
When it comes to equity funding, women and minority owners have historically had a harder time accessing capital. Luckily, there are a growing number equity firms looking for women-led businesses to fund.
When it comes to equity funding, women and minority owners have historically had a harder time accessing capital. Below are some of the groups looking to change the status quo.
Starting a small business is hard work. The list of things you have to do in order to turn your dream into reality may seem overwhelming at first. When faced with such a formidable to-do list, it is easy to think of a formal business plan as something to table for later. After all, organizing a list of responsibilities and checking off items one by one as you accomplish them is itself a form of planning. Why waste time creating and perfecting a business plan at this early stage of the game?
The answer is that even the simplest business plan will help you:
You know that writing a business plan is critical tool for planning your business and for getting a loan, but it’s hard to know where to start. Like everything else, it’s easier to begin when you have a template to follow.
You’re working on your business plan, great! Here are a few tips as you work.