Thanks so much to James Kim from ChooseWhat for this guest post. If you’re thinking of starting a new business here are some ways to find funding.
You’re overworked and underpaid. Working the 9-to-5 while balancing other pursuits. You’re bored. You have a great idea. You’re tired of being a slave to “The Man.” Whatever the reason, now’s a great time to start a small business.
“The beginning of 2010 to now, access to capital has really blossomed and a fundamental shift in angel investing has fully taken hold,” according to founder and CEO of UBER, Travis Kalanick. With informational and fiscal resources such as angel investment, venture capital, business accelerators, business loans, and online resources that offer a variety of business solutions, starting a small business has become easier than ever.
Small businesses have become our ventilators, pumping life into the U.S. economy by generating 64% of net new jobs over the past 15 years, according to the U.S. Small Business Administration. As a result, it seems like the whole nation is chanting “Long live the small business,” aiding entrepreneurs through venture capital and angel investing. According to data from research firm CB Insights, “Venture capital investments rose 19 percent, to $21.8 billion in 2010 — the first annual increase since the downturn, according to the National Venture Capital Association. The number of angel investors, meanwhile, surged 22 percent to 727 last year.” And it looks like this kind of growth will continue. Rep. Renee Elmers informs us that “Venture capital participation will increase by nearly 45%.”
Alright, so you have some resources at your disposal, but you still feel completely overwhelmed at the very notion of starting a company. Never fear. Even if you know very little about starting business, resources like business accelerators are spreading across the U.S., aiding entrepreneurs in their pursuits by investing around “$25,000 for a 6 percent ownership stake.” Working as mentors, these business accelerators teach entrepreneurs how to build products and learn business skills. While starting a business used to be a roll of the dice, its becoming a surefire way to make some much needed dough while providing the perfect opportunity to regain personal freedom.
James Kim is a writer for Choosewhat.com. ChooseWhat is a company that provides product reviews and test data for business services and products. Their goal is to help small companies make informed buying decisions on business solutions that help their business.