SPRINGFIELD, Mo -- Fifty percent of small businesses fail within the first 5 years. The economy certainly hasn't helped those businesses lately.
Getting the money even to start that business is feat all in itself. Getting a bank loan for a business is tough--banks are more conservative now. If you can't get that loan, not all hope is lost. There are many creative ways to get your business up and running.
"This has been very difficult, very straining." Mike Taylor opened Migulito's Wrap and Roll Café January 4, 2011. Finding start up capital wasn't easy.
"Even with my credit rating which is very good, it was tough, it was really really tough. We could not get any bank financing, he said, "not at all.
He turned to where many turn for money--friends and family. "Our state tax and utilities that was $9,000," Taylor explained.
It's not uncommon says John McKearney. He's a counselor with SCORE--a resource of the Small Business Associaiton.
"People who are wanting to start a business are finding more resistance," he explained.
He says there are some creative options out there though for people wanting to start a business.
Starbucks recently teamed up with the Opportunity Finance Network to help get small businesses on their feet. They ask their patrons to donate $5 and in return Starbucks says they will donate $5 million to help small business.
"Everybody should check with the state and local governments," McKearney.
"The business that does the brokerage would set up the loan and the payment schedule and everything," said McKearney. "So the borrower would pay the website operation who in turn pay the investors."
In order to be successul no matter how you get your lending, you have to have a good plan.
"An entrepreneur who wants to get help, financial help, with that has to really has to put their story together to convince a person that their risk is minimal," McKearney said.
If you are looking for some creative funding on the internet you want to check and double check where you are getting it from. There is a website out there called the Social Lending Network. It is a blog that examines different online lending groups. You can ask questions to people who have been through the process and you can find warnings about what's out there.
LIST OF CREATIVE FUNDING SOURCES:
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