In these times where getting a job is difficult, many people consider starting their own business. There are many programs that exist that help you organize the start of your business. And then what happens? We have the idea, they help us organize, we are ready and where do we get the money to start a business?
We usually choose to go to banking as an alternative to finance our business idea. Then what happens … The officer tells us that we need a Business Plan, 20% contribution plus a guarantee or collateral. We left the bank discouraged because we have neither a 20% contribution nor a guarantee to offer; But we do have the Business Plan that they helped us to do in some of the many support programs that exist and a GREAT IDEA.
DO NOT GIVE UP … there are alternatives.
Trade and Export Company – Aid program for micro enterprises. They can award up to $ 5,000 for working capital, equipment, and marketing. Popular Startup – has an open call until April 30. Financing of up to 50 thousand for businesses with less than 2 years of established. Pre-acceleration program for early development businesses. Call opens in August 2018. They offer a seed capital of $ 15,000 and 12 weeks of intensive training. startup.
Parallel 18 – business accelerator offering $ 40,000 seed capital. They have an open call at this time.
Economic Development Bank – Has a micro loan program up to $ 25,000 where you do not have to provide a contribution or collateral to apply. In addition to other types of financing.
- COFECC – Private bank that can grant loans guaranteed by SBA. It has a micro loan program of up to 50 thousand. It has a specialized program for low-income women.
- Pathstone – a non-profit organization that has a financing program of up to 50 thousand.
- Kiva ZIP – electronic platform to request loans online. You have to be endorsed by an entity recognized by KIVA.
Grameen Bank – offers group loans to women.
INSEC – www.insec.org – This organization has two programs aimed at micro companies where they provide up to $ 2,500 for equipment and a program where they contribute up to 75% of the payroll based on the minimum wage.
Department of Economic Development, Municipality of San Juan – They have a program where they grant up to $ 5,000 dollars to purchase equipment for the company. They also have a program where they contribute to payroll for employees.
Ceiba Development Corporation- Entity that grants micro loans for business development in the eastern part of the country. The average loan granted by this entity is $ 5,000.
PRESS Program, Department of the Family – They have a program where they grant up to $ 10,000 for the purchase of equipment, the applicant must be a participant in the Food Subsidy Program.
Vocational Rehabilitation – It has a program where they grant up to $ 10,000 to purchase equipment for those who receive agency services and qualify for the program.
Veterans Department – Offers programs where they help veterans who want to develop their own business.
Private Investors – You can meet someone who has enough money to invest in your business idea. It is important that you present the idea in an organized manner and what the value proposition would be for that investor. Many businesses start this way.
Business Plan Competitions – In Puerto Rico there are several business plan competitions, one of them is Enterprize, www.enterprizepr.com where the first place is $ 25 thousand dollars for the development of the company.
There are also competitions at the student level, among them are: Award for Business Innovation sponsored by Santander and Universia among others.
Private Equity Investors – Private companies dedicated to investing in innovative and sometimes high-risk projects. For this you need to present a detailed Business Plan focused on the growth of the company for at least five years.
In addition to all these programs, it is very important that we look around us and identify the resources that we have available to start. For example, when I decided to start my own company I thought, what do I have available to start… what do I need…. I realized that I only needed my cell phone, a laptop, my car and all the Starbucks in Puerto Rico. Then came the office and everything that goes with it. But from the outset, I saved all the operational costs of setting up an office and I grew little by little. Sometimes we think too big, (EYE: that is not bad), and although that may be our goal, it is important that we start from our reality. Starting our business from home is not a bad idea. Unlike.
When we decide to launch into developing our business idea, it is important that we remember the following:
* Be sure that we like what we do.
* Develop our Business Plan to see if the business can meet our expectations
* Analyze our resources
* Activate our network of people who support us in the project (not everything is money).
* Identify the source or alternative of financing (which does not have to be a bank).