as if Kerry Hanoon, Next street

A.D. In April 2021, 55-year-old Jenny Yager opened her Denver-based accounting and financial consulting firm for small and medium-sized businesses, Clarify Business Solutions, and touched on her personal savings. “What kept me going on my own was a reduction,” said Yeger, a former chief of finance and finance officer at Wakefield Property Management.

The divorced country buys a condom from her home sales and earns enough money to buy office supplies, hire a health insurance company, train a coach and book a job for women. “In theory, my business could be run from my extra bedroom,” she said. “But I understand that I need to get out. And being in a collaborative space is a great support and network. There are a lot of women doing business there; some have become customers and pointed to others.”

To support the self-publishing process for high school business coaches – Nowata Press & Consulting – Dana Elington, 54, Kennesaw, Ga., Has withdrawn $ 30,000 from her retirement account to cover initial expenses. She started the company side by side as a full-time office manager.

Tap Savings to start a business

Elington said: “I was not ready to take the jump all the time until the plague hit. “The driving force. I’m in my fifties and if I don’t do it now, when will I do it?”

She slashed the numbers and knew the penalty she had to pay to close that pension fund. But after Elington started making money in her business, she had another pension plan that she planned to support again.

Guadalupe Hert and Barbara Brooks, who run SecondActWomen – a Denver-based company – helped women in their 40s and older start their own businesses and continue to be employed – using their private money to get their start-ups off the ground.

Supporting a business in the middle of the day can be challenging, and some methods are more sophisticated than others. SCORE, affiliated with the Small Business Administration (SBA), publishes a free non-profit “Where is the money? 10 most popular financial sources and how to qualify”.

If you have a good financial structure and a strong business plan, you have many options for making money for a new company, including the ones you did not have a few years ago.

Here are the main options on how to make money starting a business.

Personal savings. Most entrepreneurs start to save money. But before you turn your savings into a business, I recommend that you set aside at least a year’s worth of living expenses, including mortgage and insurance. This is because during the first working days you may have to leave your paycheck for a few months until your income starts to go in.

Fortunately, it doesn’t take much money right now to start a middle-class business.

Starting a business now costs less

“The cost of starting a business has fallen in many respects, so the impact on personal savings may be small, if at all. You can spend less than ten thousand dollars to get out of the ground,” said John Echart, business professor and entrepreneur at the St. Thomas University School of Business in Wisconsin, Minneapolis. And editor-in-chief of Innovation Exchange (EIX). (Schulse Foundation is the next donor.)

Friends and family. If you are going this way, find out directly about any loan or grant terms and put everything in writing. Money can ruin a family relationship. Consider borrowing the money for a limited time, eat it for three years, with a low interest rate of up to 3% (less than a bank loan) or no interest, and some fluctuations if you want.

Customer Finance and Consulting Income. If your business sells products, you can sell some of them before you make money, Eckhardt suggests. He added, “You can make early income by selling your time by consulting; use this income to support the business and find out about your customer’s needs.”

Banks and credit unions. When banks lend to small businesses, it is often frustratingly frustrating. Credit officials make decisions based on the applicant’s current but future income. And if you’re just starting out, ah, the revenue isn’t really flowing.

You need a strong business plan and a high level of credit to get through the collection. Even then, expect a lot of hop.

Look for SBA-certified loans. You can search for potential lenders by looking at the “Local Resources” page on the agency’s website. SBA-guaranteed bank loans require lower payments than others, and can manage more monthly payments. Generally, you need to show that you are investing in your business or that you have real estate, such as real estate, to secure the loan.

Usa.gov, a federal government site, has information on microfinance and microfinance programs in your state.

Angel Investors and Venture Capital Companies. These include sacred gifts for many beginners, but are especially difficult for women to score. Also, angel investors (start-ups for individuals) and venture capital companies will have short-term frames for expected results. In many cases you have to give partial ownership in exchange for the money.

For more, see SBA’s Small Business Investment Company (SBIC) program for SBIC loans starting at $ 250,000.

Economic Development Programs. These are provided by cities, counties and states, but finding one that can be tapped can be a bit tricky. The resources of the SBA Economic Development Department will help you determine if this might be the way for you.

Gifts Go to the Federal Government’s Grants.gov website for information on more than 1,000 federal support programs. (Gifts do not need to be returned.)

New Crowdfunding Form for Entrepreneurs

Crowdfunding sites. Virtual fundraising campaigns generally collect a small amount of money on popular sites like Kickstarter, Indiegogo and GoFundMe, but their money may give you a little off. Check out these websites for fundraising campaigns like yours and see how much you want to raise money for yourself as a guide.

Your fundraisers here are not looking for a refund, but can be a great way to help you succeed, and to gain a basic understanding of your product or service and get feedback. Each major fundraising site handles the funding process differently and charges all fees.

There is a new way to get attention under the auspices of the Public Fund.

“There is a big difference between public funding, prize-based population and fundraising,” said Daniel Forbes, associate professor at Carlson School of Management at the University of Minnesota and senior editor of the EIX editorial board of Schulz School. Entrepreneurship at St. Thomas University.

“Reward-based fundraising involves asking for donations for certain items or services to be provided in the future. This is an effective approach for entrepreneurs in the cultural industry, such as filmmakers or musicians,” says Forbes. “On the other hand, overcrowding involves the sale of equity in your organization, and this is a more stringent process.”

A republic, for example, allows an investor – not only to do a good job – but also to invest in carefully researched private startups, up to $ 10 or up to $ 100,000 per investment.

Unlike traditional congestion forums, people who invest in equity congestion expect a return, but generally you have time to allow your company to grow. That means you have a long way to go to test the market, experiment and change your business model.

Home Equity Loan Line (HELOC). If you have a high level of equity in your home and a credit score of 700 North, this route may be a good choice. Over time, the payments will be taken as a total. Desire is not high. The average HELOC rate is currently around 3.88%, according to Bankrate.com.

Credit cards. These are challenging and easy to use for beginner costs, but be extremely careful. Most credit cards have double-digit interest rates on monthly transactions. If you want to go this route, buy plastic at low prices and best deals.

Retirement savings. Although Elington is sure to have a pension fund, in general, you do not want to go into your employer’s 401 (k) or IRA to start your business (or for any reason other than retirement). Not only do you owe income tax, but you lose the tax credit. And, if you are under ½ 59, you will have a tax debt.

Using a pension plan for a business start-up

That is, if you have a single 401 (k) pension plan for your beginner, you will be allowed to borrow it. The loan must be repaid within five years from the date of receipt of the loan. Loans are limited to 50% or $ 50,000 in your balance, less than any other. You pay interest-free interest. If the money is invested, you may miss out on the returns.

But remember that tapping these savings can be easy, especially if you are of retirement age and the time to repay your savings is dwindling.

“Closing [retirement] “I don’t mind identifying,” says Elington. See how I work until I die. I am working on what I enjoy, I am willing to do more and I have been in this for a long time. I have done so much, and I am confident that I will succeed.

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