If you haven’t heard the news, let me tell you. Black women and women of color in general are the fastest growing demographic of entrepreneurs. This is exciting news. We don’t always hear about these statistics in the media so let’s take a moment to celebrate that!
Single Black women have the lowest amount of wealth, but this is partly attributed to Black women using their personal funds, including their credit cards, to launch businesses. Black women are less likely to get business loans or lack the social capital to network to reach potential investors. Here are some options to get your business off the ground.
- Small Business Administration is great place to start. The government wants more people to start businesses and want more minority-owned businesses at that. Check out www.SBA.gov for information on loans and grants to fund small businesses.
- Angel investors – these are people with funds to invest in great ideas. Think Shark Tank but not quite as sharky. You can find angel investor groups through Google or other search engines. There’s typically an application process.
- Small business grants. Once again the government wants small businesses to generate job growth. Go to www.grants.gov to research grants available for women and businesses in general. Another source is the National Association of the Self-Employed, www.nase.org.
- Ask for money from people who believe in your idea. You can ask family and friends for a direct investment but in this digital age you can also set up a webpage where people basically invest in your cause. Websites such as Go Fund Me, www.gofundme.com, are springing up. You put together your page, send out the link and watch the money come rolling in. People have posted all manner of things from investing in a start-up to collecting cash to pay for medical bills.
- Private investor – this will likely be a friend, family member or someone who would be a great partner for your business to help drive revenue. This takes networking, but a joint venture can be the best way to capitalize on your idea.
You can find all sorts of resources online with a few clicks. Whatever your method, be prepared when asking others for money. Put together a business plan that clearly outlines your business’ goals, objectives, and proforma financials. People want to know you know what you’re doing and have put thought into it. Also having a business plan will keep you on track when distractions come your way.
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