Part of the problem is that banking as a whole has changed. Banks are rarely headquartered in the communities they serve these days. When it comes to small businesses, large banks are risk adverse, especially for any enterprise that is even mildly out-of-the-box in its business model, product line or plans. This perceived risk is fantasy, of course. Statistics clearly show that when microbusiness owners receive small, nontraditional loans under $50,000, combined with targeted technical assistance (e.g. market research, financial planning and/or management assistance), more than 80% survive and thrive during their first three to five years. What’s more, they generally create two jobs in addition to the owner in the first three years of operation. Since the banking industry isn’t going to change any time soon, the only choice for small businesses and entrepreneurs is to seek alternate sources of financing. That’s what this book is all about. In the ensuing pages, we will cover 27 strategies for funding a business, from the traditional to the creative. They aren’t ranked in any particular order, largely because one isn’t any better than the other and the best solution will be unique to your company. The information regarding these strategies are not comprehensive. You will have to do additional research to make sure they are right for your startup.
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