Is a Minority Small Business Loan Right For You?

If you are considering a minority small business loan, you may want to explore other creative business start up funding options as well. Have you looked into the possibility of forgoing traditional bank loans and government backed financing?If you are a starting a business for the first time, or have been in business for less than two years, you may want to consider the option of bootstrapping. Bootstrapping your new venture can provide you with the start up business financing you need – without big bank loans.Can Bootstrapping Really Help Me Raise the Money I Need?The answer is yes. Bootstrapping can help you to reduce or eliminate start up costs and operating expenses. In some cases, utilizing this financing strategy may make the need for a minority small business loan unnecessary. The key is knowing what resources are available to you.I recently showed a client how to save over $230 a month on business telephone service alone. She owns a hair salon and her telephone lines are the lifeline of her business. Not only do her regular customers phone to make repeat appointments, but her credit card machine operates through her telephone service provider. Reducing this expense has now enabled her to divert an extra $2,700 a year to her advertising budget.What Businesses Work Best With this Financing Strategy?Any service business or home based business presents the ideal match for a bootstrapped business. These types of businesses tend to have lower initial start up costs and usually cost less to operate. You can even start these kinds of businesses with little or no money of your own. Some examples are consultants, graphic designers, janitorial services, photographers, a personal chef service or a virtual assistant.Having said that, any type of business can benefit from reduced start up costs and overheads. A clothing store, for example, will benefit greatly from reduced credit card transaction fees.Where Do I Find Free Sources of Start Up Business Financing?Finding free sources of start up financing requires creativity and research. Begin by making a list of your estimated start up expenses and operating costs. Go over this list carefully; brainstorming areas where you feel you may be able to save money.Do some online research for sources of free funding. When doing so, keep in mind that government grants are not a very likely option. This source of free business funding is usually only made available for research, biotechnology and education.The success of your new business relies heavily upon your ability to successfully manage cash flow. With that in mind, you owe it to yourself to save as much money as you can at the start up phase. Deciding whether a minority small business loan program is right for you requires research and planning. You can make your dreams of owning your own business without bank loans a reality – even if you have little or no money. I’m living proof!