You don’t have to be in the work force all that long to know and understand that it’s not all that it’s cracked up to be. If you’re a Black woman, there’s a good chance that you won’t be compensated fairly. Your boss might be a jerk or entirely incompetent. But even if none of those things are true, there has to be more to life than spending most of your waking hours at a desk, in a cubicle, grinding to line someone else’s pockets and make their dreams come true.
Still, unless you were born into the lap of luxury, you’ll likely have to work in order to eat. Since we can’t avoid tolling away, why not work for yourself?
There are so many Black women who have entrepreneurial ideas; whether it’s an idea for an app, they want to offer financial literacy services, instruct budding authors, or open up a beauty business, there is no shortage of potential.
In our capitalistic society, you have to have money to make money. So how should you go about funding your own business?
Thankfully, with the help of Wells Fargo, we have some ideas for you.
Family and friends
Do you happen to have a parent, uncle or aunt who loves you so much they wouldn’t mind stepping off a bit of their cash to help you realize your dream? Yes? Then don’t be afraid to ask. If you don’t want the business and, let’s be real, money to affect the nature of your relationship, Wells Fargo suggests that you first determine whether they’re providing a loan or an investment. Once that is established, have them sign a contract to that effect. Lastly, Wells Fargo mentions the importance of staying in touch with this person, letting them know how the business is going and how their money is being put to use. After all, they stuck their neck out for you.
The Small Business Administration is often the first place people turn when attempting to finance their own business. Here’s a great resource, including a video, that will instruct you on the application process.
You don’t have to necessarily rely on the banks to fund your dream. These days, there are other, alternative lending sources that might be helpful to those who’ve already launched their business. According to B Plans, companies like Paypal, Can Capital and On Deck offer loans to business owners based off the revenue the business is already earning. Get the details here.
Make it your side hustle
If you’re not ready to jump without a parachute, make your small business your side hustle while using your full time job to finance it. It will take better time management skills, less sleep and likely much more dedication, but there’s safety in this option. And you also have the luxury of time to get your company up and off the ground before it becomes your main source of income.
If you’ve been responsible over the years, paying off your debts in a timely manner and making good decisions, you might have good credit. If that’s the case you can apply for credit cards to fund your small business in the beginning stages. But Wells Fargo warns that it could be dangerous if you start mixing business with personal expenses. The best option is to start small so that you can manage the monthly payments and don’t end up in a bigger hole than when you first started.
In this day and age, even established names, (looking at you Spike Lee), are using crowdfunding methods to get their ideas produced and out into the world. You’ve heard of them. There’s Kickstarter, Go Fund Me, Indiegogo. And there’s even an option called Rocket Hub that will let you keep the money you raised, even if you don’t meet your goal.
For more information about funding your small business, check out Wells Fargo.com.