Minority Business Funding Has Never Been Harder - or Easier
5 Steps to Minority Business Funding
Minority business funding is no walk in the park. By necessity, women and minorities need to be more creative in starting a business and in finding financing for that business. That creativity reaches into creative bootstrapping, locating funding sources targeted to women and minorities, and working networks like the pros that they are.Even when all of that is done, there is still more that minorities must do. Here are 5 concrete steps that minorities can take to place themselves head and shoulders above any competition, the real keys to minority business funding.
Step 1. Establish an Advisory Board. And people it with strong members of your professional community. Each and every person on that Board is saying that you are worth their time and effort. They are there to help. Accept that help – it is invaluable.
- It will complement the skills of the principals.
- It will demonstrate wide acceptance of the business concept;
- It will open doors that otherwise would be inaccessible;
- It will provide an immediate means for the principals to demonstrate leadership ability;
- It geometrically enhances the credibility of the business;
- It provides better odds for the venture capitalist or angel investor to "connect".
Step 2. Project Professionalism
~ Your Look. Your logo, your stationery, your presentation all should command respect.
~ Your Corporation. A corporation says that you mean business. Learn how to keep the corporation up to date – it is not difficult. And do it.
~ Your Business Plan. It must also have a “finished” look. Depending on the amount of money you are looking for, you may or may not need a professional writer. But you do need a strong presentation, something that really shouts that you’ve done your homework.
Step 3. Put your business plan online. Minority business funding is granted to those who are perceived as being winners -- and at this point in time, that means having a great web site. And when you are looking for funding, it means having information available online.
In fact, if you can begin your business online, and grow it to become a brick and mortar business, that is even better. It clearly demonstrates that you’ve got what it takes to be successful. At a bare minimum, create a website with password protected pages that provides all the backup information your lender or investor may need: patents, research, marketing studies, full bios, and other “additional information” that you will need.
Step 4. Keep an eye on government funding sources.
~ SBA. Take a good look at the Small Business Administration website. If there isn't something there to assist you today, there will likely be something that will aid you next week or next year.
~ MBDA. The other top governmental source for minorities is the Minority Business Development Agency. This is an agency of the Department of Commerce. Its sole purpose is to encourage the creation, growth and expansion of minority-owned businesses in the U.S. MBDA facilitates strategic partnerships, a major boon for mid size businesses that are growing.
Step 5. Be a Winner.
Whenever you choose to send in your business plan, go in expecting to win, no matter what, for in truth you will have a strong advantage over other entrepreneurs. You will have done the research and created a plan for business success. You just don't know how valuable that is. I have seen hundreds of business plans -- 95% of them don't come close to the caliber of presentation that yours will have.
Here’s the real reason that this strategy works: few entrepreneurs do it. The mere fact that you are completing these steps places you way far ahead of the competition. None of it is difficult. All it takes is dedication. As the ad says: Just do it. You will thank yourself a million times over in the years to come.
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