How Minority and Female Small Business Owners Can Finance Business Growth
According to a recent article on smallbiztrends.com, business owners who are female minorities can have a much more difficult time with the already difficult process of applying for small business loans. Since many of these entrepreneurs don’t have large amounts of capital lying around with which to finance their business improvements, they have to be resourceful and think out of the box when it comes to figuring out ways to keep their businesses moving forwards. In order to present themselves with the widest range of options, female and minority entrepreneurs should take steps to grow out their networks and evaluate their options as best they can. Here are some ways that these business owners can strengthen their businesses towards the goal of obtaining capital.
Work on your business plan. Business plans are the blueprint to your long term success. In addition, they are invaluable in the event that you are planning on applying for a bank loan or are going to be looking for a business partner. A good business plan will incorporate sales projections based off of real market research, as well as a defined and unique sales proposition and growth strategies for the business. Even if you are not able to apply for a small business loan successfully, your business plan is important to work on, as it will show you where you need to improve and where you are strong on paper, giving you the impetus to move forward with your growth organically.
Develop your professional relationships and cultivate an expert reputation. By creating a strong foundation of relationships within your professional community, not only are you building a network that can produce potential referral business and provide you with insights that are invaluable for building your business, but you are putting yourself out there as a thought leader in your industry, which benefits your search for capital buy demonstrating your expertise and business potential. This type of networking has the added benefit of allowing you to expand your social media following.
Evaluate all of your options. Do you have any collateral that you can use to back a small business loan? What is your credit score? How long have you been in business? All of these questions will determine where you can successfully apply for small business financing. Be aware that, even if you are unable to get a small business loan from a traditional bank, there are other capital options out there that can provide you with the financing you need.
Create a plan for the most effective use of your capital. Applying for small business financing is only half the battle. Once you have the funding that you are looking for, you should have a plan in place that will help you deploy it towards improving your business without missing a beat. The longer you wait to use small business financing after you are given it, the less value you get from the funded amount.
Photo Credit to Dell, inc. on Flickr