Just starting out and feeling overwhelmed by your books? Or perhaps you are picking up the pieces from a previous company? No matter the scenario, MAPS is your “go to” ally in jumpstarting your business.

Funding Options for Start-up Business

Find out how you can get funding for your small business through loans, grants and crowdfunding. Discover several of the top small business lenders. Starting a business is exciting but challenging. In order to launch a business, a small business owner will need the right amount of funding. Prior to launching a business, owners should create a budget and calculate all the starting costs. According to the Kauffman Foundation, the average cost to start a business in 2020 was $30,000. A couple of the largest start-up costs will include equipment, which often costs at least a third of your initial budget, mandatory application fees, and facility or storage space, which often requires a security deposit and an initial down payment. While these costs are relatively minimal and usually cost less than $100, they can quickly multiply. While these costs may seem overwhelming, small business owners have many options for funding a business.

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Taking action to impact, grow, and scale minority-owned businesses through a supportive ecosystem that will drive financial inclusion and achieve generational wealth for all those willing to take a step up.

Aiding small businesses in proper set-up and assisting in obtaining the proper funding for their business.

Aiding small businesses so they can benefit from accurate reporting, informed decision-making

Small Businesses

Our goal is to exceed expectations by delivering the best job possible.

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We are leaders in providing consultancy services with a set of cutting-edge technologies and a team of experienced and renowned professionals. These are some options that you can hire.

Business Loans

Most businesses receive the largest quantity of their startup funds from a business loan. Similar to a personal loan, a business loan requires business owners to establish a repayment plan and determine interest rates with their lender. Banks and credit unions are primary sources of business loans, but owners can also apply through private lenders. During the application process, the owner’s personal finances and credit score determine their rates and the amount of money they can borrow. Most lenders require business owners to submit a business presentation to explain why the funds are needed and how the business owner plans to make the business profitable.

Business Incubators/Accelerators

Business incubators are investors that offer existing space or equipment to a small business owner instead of direct funds. Investments such as these can substantially decrease initial startup costs, which will allow funds to be allocated to other startup costs. These types of investors are most commonly associated with tech startups, but they are available for other career paths as well. Incubator costs may include reduced fees, end-of-contract payments, or end-of-contract business shares once your business has had a chance to grow. While the time frame may vary based on the business and model, on average, incubators invest in a small business for two years.

Government Grants

Federal grants are another potential source for small business startup funds. Divided into multiple categories such as science, education and technology, many federal grants are available exclusively to small businesses providing various amounts of funding. Federal grants are competitive and require a detailed business proposal and strict adherence to submission deadlines to even be considered for funding. In addition to federal grants, small businesses can also apply for state grants in their area. The process is similar, but slightly less competitive since they are not competing with every other small business across the country for funding.

Personal Investment

Before requesting external funds, a small business owner must review their personal finances and honestly decide how much they can dedicate to their business. Their personal financial calculations should determine how much money they have on hand and evaluate which assets and valuables they can offer as collateral. The business owner must be honest about how much he or she can dedicate to the business. When presenting a business plan, the business owner should lay out which parts of the budget he or she is ready to independently finance, and which parts will require external funding. The more a business owner can invest in his or her project, the more comfortable investors generally will be about investing in the owner. It also shows that the owner put a great deal of thought into the business and has enough faith in his or her abilities to risk personal funds.

Friends and Family

Another source of funding informally known as love money is where a small business owner requests funds from friends and family. If a business owner chooses to accept love money, careful consideration should be given to how the money will be accepted. For instance, freely offered money counts as a gift and must be reported to the IRS so taxes can be assessed and paid on the gift. The most fiscally responsible method of receiving love money is through a loan. Although love money typically provides minimal funding for your company, it can cover initial startup costs. Removing the personal element from business is the most challenging part of requesting and accepting love money. Potential investors may have doubts and counteroffer with a smaller percentage of the amount than the business owner initially requested. Business owners should be prepared for this minimal counteroffer and develop an alternative source of funding.Although love money typically provides minimal funding for your company, it can cover initial startup costs. Removing the personal element from business is the most challenging part of requesting and accepting love money. Potential investors may have doubts and counteroffer with a smaller percentage of the amount than the business owner initially requested. Business owners should be prepared for this minimal counteroffer and develop an alternative source of funding.

Crowdfunding

One of the most contemporary sources of acquiring small business startup funds is crowdfunding. Crowdfunding involves managing an online campaign where business owners solicit funds from online investors by allowing investors to review their project and donate funds. Some crowdfunding campaigns require business owners to meet project goals before any of the funds are released, while others allow owners to withdraw funds immediately. To solicit more donors, business owners can offer perks and rewards to donors where, for instance, the quantity of the donor’s rewards increases with the quantity of their donation. Crowdfunding projections can be difficult to estimate. For instance, some business owners can receive the largest portion of their startup costs from a crowdfunding campaign going viral. Conversely, other owners only collect a few hundred dollars. Because of its unpredictability, small businesses typically should plan to secure other rounds of funding before launching a crowdfunding campaign.

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