Apple. Dell. Nordstrom. Mattel. Wrigley. These are all billion-dollar business empires. One thing they have in common: They started small. They started small with some loan from family and friends and now they are in the list of fortune 500!
One great thing about starting small is the potential to grow big, as the people who started the above mentioned businesses have proven. It depends largely of course, on the tenacity and perseverance with which we pursue our dreams. We all know that we cannot succeed in any venture, especially in business, without having these qualities (save for the few fortunate heirs and heiresses who were just handed down their billions without the need to sweat it out), and the most essential truth, a no-brainer, in fact: A capital to start that business running. All these are necessary components to start, run and maintain a business.
Realistically speaking, not all that start business with as much determination can end up becoming billionaires. But a small business that is well-managed, thus a source of a regular income, can mean survival for those who benefit from it; It also keeps intact the pride and self-esteem of persons who want to be productive in their own little ways.
In the light of the economic downturn where many who once used to be gainfully employed now find themselves laid-off from their jobs and have difficulty finding a new one, one best option aside from moping and blaming the world is to start a business. We often hear that if anything, one good thing brought about by the recession is the rise of business-ownership mindset in the people, especially those who have been badly hit by their companies’ strategic downsizing.
Now, they may be able to decide what business they would want to put up based on their passion or a feasibility plan, but the question is, do they enough savings to finance this venture? Can they borrow from their family and friends? If the answer to these questions are no, borrowing from a lending institution is the next best thing.
The first step is to know where to find lending agencies that can offer financial assistance with a reasonable interest. SBA or Small business Administration is a government agency that administers loan guarantee programs to encourage development and growth of small businesses. It has at least one office in every state so they may go there and inquire about the details on how they can obtain a small business financing loan.
Another option, for women, is to go to WBC (Women’s Business Centers). These centers provide support and services to women in rural and metropolitan communities, who are looking for capital for their small businesses. CDCs (Community Development Corporations), which major thrust is into low-cost housing and creation of jobs, also offers services and assistance for micro or small businesses and releases loans for small business of $10,000 or less.
These are the most recommended agencies for those who have sound business plans yet lack the funding. There could be many other lenders out there who also promise financial assistance but the most important thing before anyone jumps into borrowing is to plan carefully, check these agencies’ authenticity and study well their interest rates and compare it with your capacity to pay, and exercise sound judgment to minimize the risk.