Entrepreneurs helping Entrepreneurs by providing small lo...
Entrepreneurs helping Entrepreneurs by providing small loans or donations to help them grow.
Q1: Since my funds are limited should the money for advertising, marketing or hiring a new employee?
Idea Description
To be able to assist entrepreneurs who have great business ideas, but are unable to borrow funding from the bank. After I lost my job,I used that as an opportunity to start my own business, Xtra Pair of Hands(www.xtrapair.com).In the process, I used all my savings and maxed out my credit cards. Now that I am trying to grow I am unable to get a loan from the bank because of debt-credit ratio. My business has so much potential, but I do not have the money to expand.
What will you do if you win $10,000 for this idea?
I WOULD USE THE MONEY TO HIRE 2 NEW EMPLOYEES SO THAT I COULD INCREASE PROFITS. THEN, I WOULD HELP OTHER ENTREPRENEURS IN THE SAME SITUATION.
Vote for it now.
Do you know the story of Muhammad Yunus & Grameen Bank? He showed the world the success and power of making microloans to very poor people and how it could have a major impact on their lives. It's an incredible story.
…morer />With demand so high, you need to make sure you have a clear vision as to your target market. Otherwise, you'll be spending too much time trying to determine if this company or that business is a good candidate for your loan program.
That said, with limited funds, you want to lend money to other entrepreneurs??
Questions--whose money are you lending? How will you find the potential customers? Given the vastness of the small business market, will you focus on one geographic area? One industry? Will you specify potential customers by gender? ethnicity?
The idea is a good one. You need to add meat to the bone. With a finite amount of money to lend, you must determine the limits of your loans and their purpose. Are you lending $$ to help people "launch" their business, "grow" their business or possibly "save" their business (they hit a wall, pothole, etc...).
I wouldn't worry about advertising or marketing at this point. If you have money to lend, people will be beating a path to your door for a shot at it.
Even though you will be a for-profit company, your cause is a noble one. But, you can't help EVERY small business owner who needs a loan (can you??).
Stay focused and have a clear plan. Don't advertise. Don't market and hire an employee only if your are operating at 150% of capacity. Otherwise, outsource whatever you need but can't do.
Best of luck!