Business Loans

There is a perception--even among minorities--that minority business loans and venture investment aren't profitable. But that simply isn’t true. In fact, a key finding of the Kauffman Foundation report is that minority business loans are very successful.

 

According to the Kauffman Foundation analysis "Minorities and Venture Capital: A New Wave in American Business", minority enterprise venture capital investing "is very profitable", with an average net return per investment of over $1 million -- almost a 100% profit return.

 

The findings for the venture capital investments would most certainly be duplicated in straight small businesses loans as well. These, too, would prove very profitable.

All of which says that there is no reason to go to a lender or investor with hat in hand. You're not looking for a handout. You're looking for a business partner.

 

Minorities can--and do--get financing. Your business can be one of the success stories. You already know about business plans. Make yours the best business plan possible.

Follow these five steps:

 

Minority business loans are granted to those who are perceived as being winners -- and at this time, that means having a great web site. And when you are looking for funding, it means having information available online.

 

One of the strongest keys to an effective business plan for any minority is establishing a strong cross-culture Advisory Board. This Board will accomplish a number of things: It will complement the skills of the principals; it will demonstrate wide acceptance of the business concept; it will open doors that otherwise would be inaccessible; it will provide an immediate means for the principals to demonstrate leadership ability; it geometrically enhances the credibility of the business; it provides better odds for the venture capitalist or angel investor to "connect". For most business plans, such an Advisory Board is optional. For minority-owned businesses, taking the time and effort to create an effective Advisory Board is an almost essential step in the funding process.

 

Take a good look at the Small Business Administration website. If there isn't something there to assist you today, there will likely be something that will aid you next week or next year.