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Alternative Funding for Small Business: A Comprehensive Guide
Author: Dr. Evelyn Reed, PhD, Finance & Entrepreneurship; Certified Financial Planner (CFP®) - Dr. Reed is a Professor of Finance at the University of California, Berkeley, and a seasoned consultant to small businesses on financial strategies.
Publisher: Small Business Insights Publishing – A leading publisher of practical guides and resources for entrepreneurs and small business owners, known for its high-quality, researched content and commitment to accuracy.
Editor: Sarah Chen, MBA, Finance – Sarah Chen is a seasoned editor specializing in business and finance publications with over 10 years of experience in the field. She has a proven track record in producing clear, concise, and accurate financial content for a broad audience.
Keywords: alternative funding for small business, small business financing, alternative lenders, crowdfunding, invoice financing, merchant cash advance, SBA loans, small business loans, business financing options, funding for startups, bootstrapping
1. Introduction: Why Explore Alternative Funding for Small Business?
Securing funding is a critical hurdle for many small businesses, especially startups. Traditional bank loans, while often the first option considered, can be challenging to obtain. Strict lending criteria, lengthy application processes, and the need for substantial collateral often leave entrepreneurs seeking alternative funding for small business. This guide explores various options beyond traditional bank loans, examining their benefits, drawbacks, and suitability for different business types and needs. The importance of exploring alternative funding for small business cannot be overstated, as it unlocks opportunities for growth and innovation for businesses that might otherwise struggle to access capital.
2. Understanding Traditional Funding Limitations
Traditional bank loans form the cornerstone of small business financing for many. However, their limitations are significant. Banks typically require a proven track record, strong credit history, substantial collateral (such as property or equipment), and a detailed business plan. Startups and young businesses often lack these requirements, making securing traditional funding extremely difficult. Furthermore, the application process is often lengthy and cumbersome, delaying access to crucial capital during crucial growth phases. This is where alternative funding for small business emerges as a vital alternative.
3. Exploring the Spectrum of Alternative Funding for Small Business
The landscape of alternative funding for small business is diverse and constantly evolving. Here are some of the key options:
3.1 Crowdfunding: This involves raising capital from a large number of individuals through online platforms. Platforms like Kickstarter and Indiegogo are popular choices, particularly for businesses with a strong social media presence and a compelling product or service. Crowdfunding is ideal for pre-selling products, generating early customer engagement, and building brand awareness, although repayment is not typically involved.
3.2 Peer-to-Peer (P2P) Lending: This involves borrowing money from individual investors through online platforms that connect borrowers and lenders. P2P lending offers a faster and potentially less stringent application process than traditional banks, but interest rates can be higher.
3.3 Invoice Financing: This involves selling outstanding invoices to a third-party financing company at a discount in exchange for immediate cash flow. This is particularly beneficial for businesses with a high volume of invoices and strong customer payment history.
3.4 Merchant Cash Advance (MCA): This provides a lump sum of cash in exchange for a percentage of future credit card sales. MCAs are often criticized for high fees, but they can be a quick solution for immediate cash needs.
3.5 Small Business Administration (SBA) Loans: While technically not "alternative," SBA loans are government-backed loans that offer more favorable terms than conventional bank loans. They require less collateral and have lower interest rates, but the application process is still rigorous.
3.6 Angel Investors and Venture Capital: These are high-net-worth individuals or firms that invest in early-stage companies with high growth potential. They often provide not only funding but also mentorship and guidance. However, securing funding from angel investors or venture capitalists is extremely competitive and requires a strong business plan and a compelling pitch.
3.7 Bootstrapping: This involves funding a business using personal savings, revenue, and creative financing techniques. It's a viable option for businesses with limited funding needs, but it can limit growth potential.
4. Choosing the Right Alternative Funding for Small Business
Selecting the best alternative funding for small business depends on several factors:
Business Stage: Startups may benefit from crowdfunding or angel investors, while established businesses may find invoice financing or P2P lending more suitable.
Funding Needs: Small amounts can be raised through bootstrapping or crowdfunding, while larger sums may require SBA loans or venture capital.
Creditworthiness: Businesses with poor credit history may find alternative lenders more accommodating but may face higher interest rates.
Repayment Capacity: It’s crucial to realistically assess the ability to repay the loan or investment within the agreed timeframe.
5. Navigating the Application Process for Alternative Funding for Small Business
While the application processes for alternative funding can often be faster than traditional bank loans, they still require careful preparation. A well-structured business plan, accurate financial statements, and a clear understanding of the terms and conditions are essential. Thoroughly researching and comparing different lenders and financing options is crucial to secure the most favorable terms.
6. Managing the Risks Associated with Alternative Funding for Small Business
Alternative funding options, while offering greater accessibility, often come with higher interest rates and fees compared to traditional bank loans. It's crucial to understand the implications of these costs and carefully assess their impact on the business's financial health. Some options, like MCAs, can be particularly costly if not carefully managed.
7. The Future of Alternative Funding for Small Business
The landscape of alternative funding for small business continues to evolve, with new technologies and platforms emerging constantly. Fintech companies are playing an increasingly important role in providing innovative financing solutions, often leveraging data analytics and artificial intelligence to assess creditworthiness and streamline the application process. This trend is likely to continue, making alternative funding for small business even more accessible and efficient in the future.
8. Conclusion
Alternative funding for small business presents a crucial lifeline for entrepreneurs and small business owners who struggle to access traditional bank loans. By understanding the various options available and carefully assessing their benefits and risks, businesses can make informed decisions to secure the capital needed for growth and success. Choosing the right funding option requires a thorough understanding of the business’s financial situation, growth plans, and risk tolerance. Careful planning and diligent research are key to navigating the complexities of alternative financing and achieving long-term financial stability.
FAQs
1. What is the difference between invoice financing and merchant cash advance? Invoice financing involves selling your outstanding invoices, while a merchant cash advance provides a lump sum based on future credit card sales. Invoice financing is typically less expensive than an MCA.
2. Is crowdfunding suitable for all businesses? No, crowdfunding is best suited for businesses with a strong online presence and a compelling product or service that resonates with a large audience.
3. What are the risks associated with P2P lending? P2P lending can carry higher interest rates than traditional bank loans, and there's a risk of default if the borrower fails to repay.
4. How can I improve my chances of securing alternative funding? A strong business plan, good credit history, and a clear understanding of your funding needs are essential.
5. What are the eligibility requirements for SBA loans? Eligibility criteria vary but typically include US citizenship, a sound business plan, and a good credit history.
6. How do I choose the right alternative lender? Compare interest rates, fees, and terms from multiple lenders before making a decision.
7. What are the tax implications of alternative funding? Tax implications vary depending on the type of funding and should be discussed with a tax professional.
8. Can I combine different types of alternative funding? Yes, some businesses may use a combination of funding sources to meet their needs.
9. Where can I find more information on alternative funding options? Consult reputable financial websites, small business organizations, and financial advisors.
Related Articles:
1. "Unlocking Growth: A Guide to Invoice Financing for Small Businesses": This article provides a detailed overview of invoice financing, exploring its benefits, drawbacks, and application process.
2. "Crowdfunding Success: Strategies for Launching a Successful Campaign": This article offers practical tips and strategies for running a successful crowdfunding campaign.
3. "Navigating the World of Peer-to-Peer Lending for Small Businesses": This article explains the process of securing P2P loans and outlines the associated risks and rewards.
4. "SBA Loans Demystified: A Comprehensive Guide for Small Business Owners": This article provides a detailed overview of SBA loans, explaining eligibility requirements and the application process.
5. "Angel Investors and Venture Capital: Securing Funding for High-Growth Businesses": This article explores the process of attracting investment from angel investors and venture capitalists.
6. "Bootstrapping Your Business: Strategies for Funding Growth Without External Investment": This article provides practical strategies for funding a business using only internal resources.
7. "The Pros and Cons of Merchant Cash Advances: A Critical Analysis": This article offers a balanced perspective on merchant cash advances, highlighting both their benefits and potential pitfalls.
8. "Understanding and Managing the Risks of Alternative Small Business Funding": This article emphasizes the importance of risk assessment and management when choosing alternative funding options.
9. "The Future of Fintech and its Impact on Small Business Financing": This article explores the evolving role of technology in shaping the landscape of small business financing.
| alternative funding for small business: The Small Business Owner's Guide to Alternative Funding Karlene Sinclair-Robinson, 2010-02 The Use of Alternative Funding in Today's Market is Crucial Our current national financial situation makes it even harder for small businesses to qualify for bank financing. Balancing the scale in this arena is vital, but will it even out for you? This handy book >is here to guide you through the maze of options that might be of benefit to your company. You'll better understand the various financial options available, and how to access them, including tips on: Personal Financing Peer-to-Peer Lending Microloans Asset-Based Loans Factoring and Accounts Receivable Financing Merchant Cash Advance Purchase Order Financing Equipment Lease Financing Commercial Real Estate Financing Venture Capital Financing You'll also find valuable information on getting your small business started and the basic principles every owner should know. Help make your business a success and know your options! |
| alternative funding for small business: Business Funding For Dummies Helene Panzarino, 2016-04-11 Get the business funding you need to secure your success The issue of funding is one of the biggest pain points for small- and medium-sized businesses—and one that comes up on a daily basis. Whether you're unsure about how to go about getting a loan, unfamiliar with the different options available to you or confused as to which would be the right solution for your particular business, Business Funding For Dummies provides plain-English, down-to-earth guidance on everything you need to successfully fund your business venture. Friendly, authoritative, and with a dash of humor thrown in for fun, this hands-on guide takes the fear out of funding and walks you step-by-step through the process of ensuring your business is financially viable. From crowd funding and angels to grants and friends, families, and fools, it covers every form of funding available—and helps you hone in on and secure the ones that are right for your unique needs. Includes mini case studies, quotes, and plenty of examples Offers excerpts from interviews with financiers and entrepreneurs Topics covered include all forms of funding Covers angels in the UK and abroad If you're the owner or director of a small-to-medium-sized business looking to start an SME, but have been barking up the wrong tree, Business Funding For Dummies is the fast and easy way to get the funds you need. |
| alternative funding for small business: ˜Theœ Small Business Owner's Guide to Alternative Funding Karlene Sinclair-Robinson, 2010 |
| alternative funding for small business: The State Small Business Credit Initiative (SSBCI) Marcus Powell, 2013 The SSBCI provides funding to states, territories, and eligible municipalities to expand existing or to create new state small business investment programs, including state capital access programs, collateral support programs, loan participation programs, loan guarantee programs, and venture capital programs. This book examines the SSBCI and its implementation, including Treasury's response to initial program audits conducted by the U.S. Government Accountability Office and Treasury's Office of Inspector General. These audits suggested that SSBCI participants were generally complying with the statute's requirements, but that some compliance problems existed, in that, the Treasury's oversight of the program could be improved; and performance measures were needed to assess the program's efficacy. |
| alternative funding for small business: Crack the Funding Code Judy Robinett, 2019-02-05 Crack the Funding Code demystifies the world of angel investing, venture capital, and corporate funding and lays out a strategic pathway for any entrepreneur to secure funding fast. Lack of funding is one of the biggest reasons small businesses fail. In 2016 in the United States alone, more than 31 percent of small business owners reported that they could not access adequate capital, and the lack of capital prevented them from growing the business/expanding operations, increasing inventory, or financing increased sales. This book will show you how to find the money, create pitches that attract investors, and then structure fair, ethical deals that will bring them new sources of outside capital and invaluable professional advice. Crack the Funding Code gives you the broader perspective on: how funding works, how investors think, and what they need to hear to put their money where your mouth is. Every entrepreneur who reads this book will get easy-to-follow deal checklists, a roadmap of where and how to locate the best funding resources and top business mentors for their industry or geographical location, and a step-by-step process to create pitches that make their idea or business irresistible. |
| alternative funding for small business: Financing Your Business Dreams with Other People's Money Harold R. Lacy, 1998 Most of the books available today that target would-be small-business owners focus on putting together the business plan and only mention the various categories for raising start-up capital. Lacy takes the opposite approach. He contrasts and provides detailed profiles of government, bank, and alternative funding sources, and he recommends approaching a combination of potential funders. He also includes franchising as an option for going into business for oneself. He offers an 'action plan' for approaching funding sources, but he also includes the elements of a 'winning' business plan. More than a third of the book is devoted to a state-by-state listing of funding agencies and organizations that can provide assistance or guidance. Lacy has 25 years of banking experience. In 1989, working with the SBA and a community college, he helped develop a program to help businesses seek funding. That experience showed Lacy there was a market for this information, and he created the Money Institute seminar, on which this book is based. |
| alternative funding for small business: Guerrilla Financing Bruce Jan Blechman, Jay Conrad Levinson, 1992-08-20 The authors offer creative, street-smart financing techniques for raising capital for any type of business anywhere in the country, no matter what the circumstances. Nontraditional methods of achieving one's goals are outlined, using fresh and innovative sources of financing that are available to anyone with a winning idea or business. |
| alternative funding for small business: The Small Business Advocate , 1996-05 |
| alternative funding for small business: Finance Your Own Business Garrett Sutton, Gerri Detweiler, 2016-01-05 Learn the financing fast track strategies used by successful entrepeneurs and investors. |
| alternative funding for small business: Startup Money Made Easy Maria Aspan, 2019-02-12 Let the experts at Inc.guide you through every critical step and potential pitfall as their on-the-ground reporting shows how to locate funding, manage your money, and smart hack your way to a comfortable retirement. Startup Money Made Easy gathers the best advice from the magazine’s pages, spotlighting celebrated entrepreneurs and inspiring stories. You’ll hear from: FUBU founder Daymond John, who mortgaged his family home for start-up capital—and built a $6 billion empire Makeup artist Bobbi Brown, who turned a modest lipstick line into a profitable 30-store enterprise Alexa von Tobel, who dropped out of Harvard Business School to launch the equity-magnate LearnVest.com Mark Cuban, Sallie Krawcheck, Max Levchin, and other founders who overcame financial obstacles on their way to the top Additionally, these stories include on-target tips that explain how to: Raise your first $10,000 in capital Power through the lean years Get friends and family to back you up Round up outside investors Go public or sell, while still staying in charge Reward people with great salaries and benefits Eliminate tax season surprises Grow without growing pains Cash flow problems are the number-one business killer. Whether you’re dreaming up a startup idea or knee deep in the craziness, learn to shore up your finances and safeguard the business. |
| alternative funding for small business: SME Funding Gianluca Oricchio, Andrea Crovetto, Sergio Lugaresi, Stefano Fontana, 2016-12-15 This book explores current financing options for small and medium size enterprises (SMEs), with particular insight into the European market. The authors position SME funding within a risk-averse lending environment with high regulatory costs on business loans, which has arisen from the recent financial crisis and new European bank capital regulations. Chapters in the book demonstrate how and why SMEs may be forced to leave the market and posit that shadow banking and other alternative funding options are viable channels for raising funds. A new and innovative SME credit risk model is also presented. This book will appeal to all who share an interest in sustainable solutions to issues in SME financing. |
| alternative funding for small business: How to Raise Money for a Small Business , 1993 |
| alternative funding for small business: Get Financing Now: How to Navigate Through Bankers, Investors, and Alternative Sources for the Capital Your Business Needs Charles Green, 2012-01-13 Every entrepreneur should read this book, ideally before they start their next business. The insights into finance and financial planning should help the entrepreneur not make many of the mistakes I did! Jim Beach, Director of Education at The Entrepreneur School and author of School for Start-Ups An exhaustive and invaluable resource for companies seeking funding at any stage of their life cycle. Donald J. Mullineaux, DuPont Chair in Banking and Financial Services, Gatton College of Business and Economics, University of Kentucky “Get Financing Now is a must for every entrepreneur starting a business or growing a business. . . . Although an easy and enjoyable read, the information and insight Charles Green provides isn’t sugar coated. It is relevant and timely in today’s economic challenging times. It seemed that every page had at least one ‘golden nugget’ that an entrepreneur could literally ‘take to the bank.’” Karen Rands, strategic advisor to entrepreneurs regarding access to capital and coordinator of an Atlanta based angel investor group ”Charles Green’s new book Get Financing Now is a real-world description of what small-business owners must know to fund startup or growth, and improves the probability for small-business owners to get the funding they need.” Jerry Chautin, national business columnist, former entrepreneur, SCORE business mentor and SBA’s 2006 national Journalist of the Year “Charles Green is a change agent for entrepreneurs in the field of acquiring financing and capital. He has written the premier guide to help entrepreneurs through the changes needed to acquire capital in the new marketplace thrust upon us by the great recession. I highly recommend Get Financing Now.” Larry Tyler, author of Romancing the Loan A fantastic read! To the point and explains business terms for laymen—helps grasping the concept easily. Love it!” Colethea Jenkins, Build Grow and Enjoy |
| alternative funding for small business: Rewarding Provider Performance Institute of Medicine, Board on Health Care Services, Committee on Redesigning Health Insurance Performance Measures, Payment, and Performance Improvement Programs, 2007-02-17 The third installment in the Pathways to Quality Health Care series, Rewarding Provider Performance: Aligning Incentives in Medicare, continues to address the timely topic of the quality of health care in America. Each volume in the series effectively evaluates specific policy approaches within the context of improving the current operational framework of the health care system. The theme of this particular book is the staged introduction of pay for performance into Medicare. Pay for performance is a strategy that financially rewards health care providers for delivering high-quality care. Building on the findings and recommendations described in the two companion editions, Performance Measurement and Medicare's Quality Improvement Organization Program, this book offers options for implementing payment incentives to provide better value for America's health care investments. This book features conclusions and recommendations that will be useful to all stakeholders concerned with improving the quality and performance of the nation's health care system in both the public and private sectors. |
| alternative funding for small business: CAPITAL INVESTMENT AND FINANCING FOR BEGINNERS Dr. Ajay Tyagi, 2017-01-01 A corporate speculator embraces a monetary assessment while choosing whether to put resources into substantial resources or different business. The speculator needs to guarantee that it pays close to a reasonable incentive to buy the venture and that the monetary benefit for its proprietors is augmented. The part talks about monetary assessment with regards to venture choices with an emphasis on speculation valuation and organizing and assessment procedures. Capital gave to an organization, and any value produced inside, should just be put resources into resources if esteem is made for investors—that is, the point at which the estimation of financial advantages emerging from the advantages surpasses the cost of procuring those advantages. |
| alternative funding for small business: Finance Your Business The Staff of Entrepreneur Media, 2016-11-21 FUND YOUR DREAM BUSINESS Every business needs money. Whether you’re just starting out or are ready to expand, hunting for cash isn’t easy and you’ll need a game plan to be successful. The experts of Entrepreneur can help improve your odds of success by exploring the available options to guiding you from small business loans and angel investors to crowdfunding and venture capital. |
| alternative funding for small business: Access to Bank Credit and SME Financing Stefania Rossi, 2016-12-02 This book explores how the global financial and European sovereign debt crises have forced small-and-medium-sized businesses (SMEs) to reassess and adapt their funding strategies. At the heart of the matter is the worsening access to bank credit for such enterprises. Through this discussion we learn how crucial an understanding of SME-financing is to policy makers, in light of the fact that SMEs dominate the business landscape in Europe and are the main drivers of employment, growth and innovation in the European economy. Contributing chapters present expert analysis and investigate many topics including the problems faced by SMEs in accessing bank credit and the cost of funding and its determinants. Particular attention is also given to how credit-constrained enterprises may reformulate their funding strategies by employing alternative, non-bank, financial resources, and how regulators could support SMEs in broadening and improving their funding opportunities. |
| alternative funding for small business: Good Strategy Bad Strategy Richard Rumelt, 2011-07-19 Good Strategy/Bad Strategy clarifies the muddled thinking underlying too many strategies and provides a clear way to create and implement a powerful action-oriented strategy for the real world. Developing and implementing a strategy is the central task of a leader. A good strategy is a specific and coherent response to—and approach for—overcoming the obstacles to progress. A good strategy works by harnessing and applying power where it will have the greatest effect. Yet, Rumelt shows that there has been a growing and unfortunate tendency to equate Mom-and-apple-pie values, fluffy packages of buzzwords, motivational slogans, and financial goals with “strategy.” In Good Strategy/Bad Strategy, he debunks these elements of “bad strategy” and awakens an understanding of the power of a “good strategy.” He introduces nine sources of power—ranging from using leverage to effectively focusing on growth—that are eye-opening yet pragmatic tools that can easily be put to work on Monday morning, and uses fascinating examples from business, nonprofit, and military affairs to bring its original and pragmatic ideas to life. The detailed examples range from Apple to General Motors, from the two Iraq wars to Afghanistan, from a small local market to Wal-Mart, from Nvidia to Silicon Graphics, from the Getty Trust to the Los Angeles Unified School District, from Cisco Systems to Paccar, and from Global Crossing to the 2007–08 financial crisis. Reflecting an astonishing grasp and integration of economics, finance, technology, history, and the brilliance and foibles of the human character, Good Strategy/Bad Strategy stems from Rumelt’s decades of digging beyond the superficial to address hard questions with honesty and integrity. |
| alternative funding for small business: Financial Management for Small Businesses Steven D. Hanson, Lindon J. Robison, J. Roy Black, 2017 |
| alternative funding for small business: Securitization of Small Business Loans Christopher Beshouri, 1994 |
| alternative funding for small business: Getting a Business Loan Ty Kiisel, 2013-11-04 Describes alternative lending sources for small businesses, as well as traditional funding sources. |
| alternative funding for small business: How Venture Capital Works Phillip Ryan, 2012-07-01 Explanations to the inner workings of one of the least understood, but arguably most important, areas of business finance is offered to readers in this engaging volume: venture capital. Venture capitalists provide necessary investment to seed (or startup) companies, but the startup is only the beginning, there is much more to be explored. These savvy investors help guide young entrepreneurs, who likely have little experience, to turn their businesses into the Googles, Facebooks, and Groupons of the world. This book explains the often-complex methods venture capitalists use to value companies and to get the most return on their investments, or ROI. This book is a must-have for any reader interested in the business world. |
| alternative funding for small business: How to Start a Business in Colorado Entrepreneur Press, 2007-07-09 SmartStart Your Business Today! How to Start a Business in Colorado is your road map to avoiding operational, legal and financial pitfalls and breaking through the bureaucratic red tape that often entangles new entrepreneurs. This all-in-one resource goes a step beyond other business how-to books to give you a jump-start on planning for your business. It provides you with: Valuable state-specific sample forms and letters on CD-ROM Mailing addresses, telephone numbers and websites for the federal, state, local and private agencies that will help get your business up and running State population statistics, income and consumption rates, major industry trends and overall business incentives to give you a better picture of doing business in Colorado Checklists, sample forms and a complete sample business plan to assist you with numerous startup details State-specific information on issues like choosing a legal form, selecting a business name, obtaining licenses and permits, registering to pay taxes and knowing your employer responsibilities Federal and state options for financing your new venture Resources, cost information, statistics and regulations have all been updated. That, plus a new easier-to-use layout putting all the state-specific information in one block of chapters, make this your must-have guide to getting your business off the ground. |
| alternative funding for small business: HBR Guide to Buying a Small Business Richard S. Ruback, Royce Yudkoff, 2017-01-17 An all-in-one guide to helping you buy and own your own business. Are you looking for an alternative to a career path at a big firm? Does founding your own start-up seem too risky? There is a radical third path open to you: You can buy a small business and run it as CEO. Purchasing a small company offers significant financial rewards—as well as personal and professional fulfillment. Leading a firm means you can be your own boss, put your executive skills to work, fashion a company environment that meets your own needs, and profit directly from your success. But finding the right business to buy and closing the deal isn't always easy. In the HBR Guide to Buying a Small Business, Harvard Business School professors Richard Ruback and Royce Yudkoff help you: Determine if this path is right for you Raise capital for your acquisition Find and evaluate the right prospects Avoid the pitfalls that could derail your search Understand why a dull business might be the best investment Negotiate a potential deal with the seller Avoid deals that fall through at the last minute Arm yourself with the advice you need to succeed on the job, with the most trusted brand in business. Packed with how-to essentials from leading experts, the HBR Guides provide smart answers to your most pressing work challenges. |
| alternative funding for small business: How to Write a Great Business Plan William A. Sahlman, 2008-03-01 Judging by all the hoopla surrounding business plans, you'd think the only things standing between would-be entrepreneurs and spectacular success are glossy five-color charts, bundles of meticulous-looking spreadsheets, and decades of month-by-month financial projections. Yet nothing could be further from the truth. In fact, often the more elaborately crafted a business plan, the more likely the venture is to flop. Why? Most plans waste too much ink on numbers and devote too little to information that really matters to investors. The result? Investors discount them. In How to Write a Great Business Plan, William A. Sahlman shows how to avoid this all-too-common mistake by ensuring that your plan assesses the factors critical to every new venture: The people—the individuals launching and leading the venture and outside parties providing key services or important resources The opportunity—what the business will sell and to whom, and whether the venture can grow and how fast The context—the regulatory environment, interest rates, demographic trends, and other forces shaping the venture's fate Risk and reward—what can go wrong and right, and how the entrepreneurial team will respond Timely in this age of innovation, How to Write a Great Business Plan helps you give your new venture the best possible chances for success. |
| alternative funding for small business: Venture Capital and Angel Investing Andrew M. Lane, Nicole P. Mifflin, 2011 Entrepreneurs constantly seek capital for new and existing ventures even though they face considerable constraints in obtaining financing. Venture capital from outside investors has been considered an important driver in the start-up and growth of entrepreneurial firms. Unlike venture capital investments, angel investments are made by individual investors who do not make up a known population. Therefore, much of what is reported about angel investing comes from anecdotes and surveys of convenience samples, which are prone to biases and inaccuracies. This book examines the roles of angel investing in the entrepreneurial finance system and the funded and unfunded business plans to determine the key factors in the venture capital investment decision process. |
| alternative funding for small business: Handbook of Research on Social and Organizational Dynamics in the Digital Era Idemudia, Efosa C., 2019-08-30 Technology in the world today impacts every aspect of society and has infiltrated every industry, affecting communication, management, security, etc. With the emergence of such technologies as IoT, big data, cloud computing, AI, and virtual reality, organizations have had to adjust the way they conduct business to account for changing consumer behaviors and increasing data protection awareness. The Handbook of Research on Social and Organizational Dynamics in the Digital Era provides relevant theoretical frameworks and the latest empirical research findings on all aspects of social issues impacted by information technology in organizations and inter-organizational structures and presents the conceptualization of specific social issues and their associated constructs. Featuring coverage on a broad range of topics such as business management, knowledge management, and consumer behavior, this publication seeks to advance the practice and understanding of technology and the impacts of technology on social behaviors and norms in the workplace and society. It is intended for business professionals, executives, IT practitioners, policymakers, students, and researchers. |
| alternative funding for small business: The Complete Guide to Selling a Business Fred S. Steingold, 2017-08-30 Out there somewhere is a buyer looking to buy a business like yours. So if you're ready to sell, make sure you protect your interests and maximize your profit with this all-in-one guide. |
| alternative funding for small business: The Customer-Funded Business John Mullins, 2014-07-21 Who needs investors? More than two generations ago, the venture capital community – VCs, business angels, incubators and others – convinced the entrepreneurial world that writing business plans and raising venture capital constituted the twin centerpieces of entrepreneurial endeavor. They did so for good reasons: the sometimes astonishing returns they've delivered to their investors and the astonishingly large companies that their ecosystem has created. But the vast majority of fast-growing companies never take any venture capital. So where does the money come from to start and grow their companies? From a much more agreeable and hospitable source, their customers. That's exactly what Michael Dell, Bill Gates and Banana Republic's Mel and Patricia Ziegler did to get their companies up and running and turn them into iconic brands. In The Customer Funded Business, best-selling author John Mullins uncovers five novel approaches that scrappy and innovative 21st century entrepreneurs working in companies large and small have ingeniously adapted from their predecessors like Dell, Gates, and the Zieglers: Matchmaker models (Airbnb) Pay-in-advance models (Threadless) Subscription models (TutorVista) Scarcity models (Vente Privee) Service-to-product models (GoViral) Through the captivating stories of these and other inspiring companies from around the world, Mullins brings to life the five models and identifies the questions that angel or other investors will – and should! – ask of entrepreneurs or corporate innovators seeking to apply them. Drawing on in-depth interviews with entrepreneurs and investors who have actually put these models to use, Mullins goes on to address the key implementation issues that characterize each of the models: when to apply them, how best to apply them, and the pitfalls to watch out for. Whether you're an aspiring entrepreneur lacking the start-up capital you need, an early-stage entrepreneur trying to get your cash-starved venture into take-off mode, an intrapreneur seeking funding within an established company, or an angel investor or mentor who supports high-potential ventures, this book offers the most sure-footed path to starting, financing, or growing your venture. John Mullins is the author of The New Business Road Test and, with Randy Komisar, the widely acclaimed Getting to Plan B. |
| alternative funding for small business: The Business Funding Formula Leo Kanell, 2017-01-18 Starting a business is the new American dream, so how do you fund it? Do you go to venture capital or crowdfunding, and what are all of these confusing funding options on google? Since the recession in 2008, it has never been more complicated or confusing to secure capital for your business. The Business Funding Formula creates an easy to follow step by step process to secure the very best funding you can qualify for guaranteed! Learn how the funding formula helped jump-start well known billion dollar businesses and precisely what you need to do to fund your start-up or existing business. Read how the author struggled to learn how to fund his own business and then began helping other entrepreneurs do the same. Are you looking for startup funding, large fixed rate loans, business lines of credit or even funding at 0% for the first year? The Business Funding Formula has the answers for every major funding option available to entrepreneurs today and most importantly will save you loads of time looking for funding solutions for your business. |
| alternative funding for small business: Spank the Bank Karlene Sinclair-Robinson, 2013-01-01 This step-by-step guide shows startups and smaller companies how to locate and tap into non-bank financing. Rising financial star Karlene Sinclair-Robinson shares the wealth of knowledge she gained through personal experience as an entrepreneur. |
| alternative funding for small business: Mergers and Acquisitions of Privately Held Companies Richard D. Harroch, David A. Lipkin, Richard Smith, 2018 |
| alternative funding for small business: Bank On Yourself Pamela Yellen, 2010-03-23 The Wall Street Journal, USA Today, and BusinessWeek bestseller Bank On Yourself: The Life-Changing Secret to Growing and Protecting Your Financial Future reveals the secrets to taking back control of your financial future that Wall Street, banks, and credit card companies don’t want you to know. Can you imagine what it would be like to look forward to opening your account statements because they always have good news and never any ugly surprises? More than 100,000 Americans of all ages, incomes, and backgrounds are already using Bank On Yourself to grow a nest-egg they can predict and count on, even when stocks, real estate, and other investments tumble. You’ll meet some of them and hear their stories of how Bank On Yourself has helped them reach a wide variety of short- and longterm personal and financial goals and dreams in this book. |
| alternative funding for small business: Regulation A+ and Other Alternatives to a Traditional IPO David N. Feldman, 2018-01-18 Understand Regulation A+ and other alternative funding methods Regulation A+ and Other Alternatives to a Traditional IPO delves into the details of the newSEC rules under the JOBS Act of 2012 to examine the benefits and pitfalls for entrepreneurs and investors. Written by the 'Godfather of Reg A+,' this book breaks down the complex details of Regulation A+ and other alternative funding methods to help small businesses determine how best to go public and raise capital. A traditional IPO comes with barriers that can be insurmountable for a small company seeking to enter the public markets; thus far, reverse mergers have provided a challenging 'back door' to the market, but Regulation A+ re-opens the front door to allow small cap companies to raise capital while keeping offering and compliance costs manageable in a way not possible with a traditional IPO. More complex than simple crowdfunding, yet just as accessible by all investors, Regulation A+ is a step up for entrepreneurs at any stage wanting to go public where Wall Street meets Main Street. Straightforward explanations, smart strategy, and illustrative examples make this book an invaluable guide for those seeking to truly understand the nuances of Regulation A+ in order to work more effectively within its bounds. Understand how Regulation A+ differs from a traditional IPO and the early experience with this exciting new approach Examine the JOBS Act and the SEC's rules under Title IV Explore the past, present, and future of reverse mergers, special purpose acquisition companies (SPACs) and self-filings Discover new alternatives including new rules under Rule 504 and Regulation S The new rules provide a faster, more streamlined, more cost-effective route to up to $50 million in capital, and offer companies more flexibility than ever. Every entrepreneur needs to know all available funding options, and Regulation A+ and Other Alternatives to a Traditional IPO provides essential guidance from the expert in the field. |
| alternative funding for small business: Where to Go when the Bank Says No David R. Evanson, 1998 An extensive resource that shows in detail how to obtain equity capital in the range of $250,000 of $15 million, this guide pinpoints business plan flaws that typically sabotage otherwise worthy proposals for financing. |
| alternative funding for small business: Venture Capital For Dummies Nicole Gravagna, Peter K. Adams, 2013-08-15 Secure venture capital? Easy. Getting a business up and running or pushing a brilliant product to the marketplace requires capital. For many entrepreneurs, a lack of start-up capital can be the single biggest roadblock to their dreams of success and fortune. Venture Capital For Dummies takes entrepreneurs step by step through the process of finding and securing venture capital for their own projects. Find and secure venture capital for your business Get your business up and running Push a product to the marketplace If you're an entrepreneur looking for hands-on guidance on how to secure capital for your business, the information in Venture Capital For Dummies gives you the edge you need to succeed. |
| alternative funding for small business: Pain Management and the Opioid Epidemic National Academies of Sciences, Engineering, and Medicine, Health and Medicine Division, Board on Health Sciences Policy, Committee on Pain Management and Regulatory Strategies to Address Prescription Opioid Abuse, 2017-09-28 Drug overdose, driven largely by overdose related to the use of opioids, is now the leading cause of unintentional injury death in the United States. The ongoing opioid crisis lies at the intersection of two public health challenges: reducing the burden of suffering from pain and containing the rising toll of the harms that can arise from the use of opioid medications. Chronic pain and opioid use disorder both represent complex human conditions affecting millions of Americans and causing untold disability and loss of function. In the context of the growing opioid problem, the U.S. Food and Drug Administration (FDA) launched an Opioids Action Plan in early 2016. As part of this plan, the FDA asked the National Academies of Sciences, Engineering, and Medicine to convene a committee to update the state of the science on pain research, care, and education and to identify actions the FDA and others can take to respond to the opioid epidemic, with a particular focus on informing FDA's development of a formal method for incorporating individual and societal considerations into its risk-benefit framework for opioid approval and monitoring. |
| alternative funding for small business: Race and Entrepreneurial Success Robert W. Fairlie, Alicia M. Robb, 2010-08-13 A comprehensive analysis of racial disparities and the determinants of entrepreneurial performance—in particular, why Asian-owned businesses on average perform relatively well and why black-owned businesses typically do not. Thirteen million people in the United States—roughly one in ten workers—own a business. And yet rates of business ownership among African Americans are much lower and have been so throughout the twentieth century. In addition, and perhaps more importantly, businesses owned by African Americans tend to have lower sales, fewer employees and smaller payrolls, lower profits, and higher closure rates. In contrast, Asian American-owned businesses tend to be more successful. In Race and Entrepreneurial Success, minority entrepreneurship authorities Robert Fairlie and Alicia Robb examine racial disparities in business performance. Drawing on the rarely used, restricted-access Characteristics of Business Owners (CBO) dataset compiled by the U.S. Census Bureau, Fairlie and Robb examine in particular why Asian-owned firms perform well in comparison to white-owned businesses and black-owned firms typically do not. They also explore the broader question of why some entrepreneurs are successful and others are not. After providing new comprehensive estimates of recent trends in minority business ownership and performance, the authors examine the importance of human capital, financial capital, and family business background in successful business ownership. They find that a high level of startup capital is the most important factor contributing to the success of Asian-owned businesses, and that the lack of startup money for black businesses (attributable to the fact that nearly half of all black families have less than $6,000 in total wealth) contributes to their relative lack of success. In addition, higher education levels among Asian business owners explain much of their success relative to both white- and African American-owned businesses. Finally, Fairlie and Robb find that black entrepreneurs have fewer opportunities than white entrepreneurs to acquire valuable pre-business work experience through working in family businesses. |
| alternative funding for small business: Fintech, Small Business & the American Dream Karen G. Mills, 2019-03-12 Small businesses are the backbone of the U.S. economy. They are the biggest job creators and offer a path to the American Dream. But for many, it is difficult to get the capital they need to operate and succeed. In the Great Recession, access to capital for small businesses froze, and in the aftermath, many community banks shuttered their doors and other lenders that had weathered the storm turned to more profitable avenues. For years after the financial crisis, the outlook for many small businesses was bleak. But then a new dawn of financial technology, or “fintech,” emerged. Beginning in 2010, new fintech entrepreneurs recognized the gaps in the small business lending market and revolutionized the customer experience for small business owners. Instead of Xeroxing a pile of paperwork and waiting weeks for an answer, small businesses filled out applications online and heard back within hours, sometimes even minutes. Banks scrambled to catch up. Technology companies like Amazon, PayPal, and Square entered the market, and new possibilities for even more transformative products and services began to appear. In Fintech, Small Business & the American Dream, former U.S. Small Business Administrator and Senior Fellow at Harvard Business School, Karen G. Mills, focuses on the needs of small businesses for capital and how technology will transform the small business lending market. This is a market that has been plagued by frictions: it is hard for a lender to figure out which small businesses are creditworthy, and borrowers often don’t know how much money or what kind of loan they need. New streams of data have the power to illuminate the opaque nature of a small business’s finances, making it easier for them to weather bumpy cash flows and providing more transparency to potential lenders. Mills charts how fintech has changed and will continue to change small business lending, and how financial innovation and wise regulation can restore a path to the American Dream. An ambitious book grappling with the broad significance of small business to the economy, the historical role of credit markets, the dynamics of innovation cycles, and the policy implications for regulation, Fintech, Small Business & the American Dream is relevant to bankers, fintech investors, and regulators; in fact, to anyone who is interested in the future of small business in America. |
| alternative funding for small business: Alternative Finance John S. Gordon, 1992-12-01 |
ALTERNATIVE Definition & Meaning - Merriam-Webster
The meaning of ALTERNATIVE is offering or expressing a choice. How to use alternative in a sentence. Synonym Discussion of Alternative.
ALTERNATIVE | English meaning - Cambridge Dictionary
ALTERNATIVE definition: 1. An alternative plan or method is one that you can use if you do not want to use another one: 2…. Learn more.
ALTERNATIVE Definition & Meaning | Dictionary.com
Alternative definition: a choice limited to one of two or more possibilities, as of things, propositions, or courses of action, the selection of which precludes any other possibility.. See …
ALTERNATIVE definition and meaning | Collins English Dictionary
Alternative is used to describe something that is different from the usual things of its kind, or the usual ways of doing something, in modern Western society. For example, an alternative …
Alternative - Wikipedia
Alternative (Kamen Rider), a character in the Japanese TV series Kamen Rider RyukiAlternative comics, or independent comics are an alternative to mainstream superhero comics; Alternative …
Alternative - definition of alternative by The Free Dictionary
Define alternative. alternative synonyms, alternative pronunciation, alternative translation, English dictionary definition of alternative. n. 1. a. One of a number of possible choices or courses of …
alternative noun - Definition, pictures, pronunciation and usage …
alternative something that you can choose to have or do out of two or more possibilities: You can be paid in cash weekly or by cheque monthly: those are the two alternatives. option, choice or …
What does alternative mean? - Definitions.net
Alternative refers to one or more options or choices available as a substitute or replacement to the existing one. It generally denotes the possibility of choice between two or more things. In …
Alternative Definition & Meaning | Britannica Dictionary
ALTERNATIVE meaning: 1 : offering or expressing a choice; 2 : not usual or traditional often used to describe something that is more natural or that causes less pollution than the usual product, …
alternative - WordReference.com Dictionary of English
a choice among only two possibilities such that if one is chosen, the other cannot be chosen: Here are the alternatives: surrender or die. one of these choices: The alternative to riding is walking. …
ALTERNATIVE Definition & Meaning - Merriam-Webster
The meaning of ALTERNATIVE is offering or expressing a choice. How to use alternative in a sentence. Synonym Discussion of Alternative.
ALTERNATIVE | English meaning - Cambridge Dictionary
ALTERNATIVE definition: 1. An alternative plan or method is one that you can use if you do not want to use another one: 2…. Learn more.
ALTERNATIVE Definition & Meaning | Dictionary.com
Alternative definition: a choice limited to one of two or more possibilities, as of things, propositions, or courses of action, the selection of which precludes any other possibility.. See …
ALTERNATIVE definition and meaning | Collins English Dictionary
Alternative is used to describe something that is different from the usual things of its kind, or the usual ways of doing something, in modern Western society. For example, an alternative …
Alternative - Wikipedia
Alternative (Kamen Rider), a character in the Japanese TV series Kamen Rider RyukiAlternative comics, or independent comics are an alternative to mainstream superhero comics; Alternative …
Alternative - definition of alternative by The Free Dictionary
Define alternative. alternative synonyms, alternative pronunciation, alternative translation, English dictionary definition of alternative. n. 1. a. One of a number of possible choices or courses of …
alternative noun - Definition, pictures, pronunciation and usage …
alternative something that you can choose to have or do out of two or more possibilities: You can be paid in cash weekly or by cheque monthly: those are the two alternatives. option, choice or …
What does alternative mean? - Definitions.net
Alternative refers to one or more options or choices available as a substitute or replacement to the existing one. It generally denotes the possibility of choice between two or more things. In …
Alternative Definition & Meaning | Britannica Dictionary
ALTERNATIVE meaning: 1 : offering or expressing a choice; 2 : not usual or traditional often used to describe something that is more natural or that causes less pollution than the usual product, …
alternative - WordReference.com Dictionary of English
a choice among only two possibilities such that if one is chosen, the other cannot be chosen: Here are the alternatives: surrender or die. one of these choices: The alternative to riding is walking. …
