4 | February 2021 BUSINESS
5 Tips for Starting Your Own Business such as the Small Business Administration (SBA) to get to know the market for your business.
By d-mars.com News Provider
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here's no doubt the pandemic has hit small businesses hard. Even in its early weeks, February to April 2020, the number of active businesses plummeted by 22%, according to a report from the National Bureau of Economic Research. And unfortunately, the consequences of the early shutdowns impacted minorityowned businesses even harder, with Black-owned businesses seeing a 41% drop, Latinx businesses 32%, Asian businesses 26% and women-owned businesses 25%. Does that bad news mean that now is the wrong time to consider starting a new business? Not necessarily. Opportunities exist for small businesses today, including support and funding for start-ups - and especially for minority business owners.
youwant wantto tostart startaasmall smallbusiness, business,here hereare IfIfyou are steps toyou get started. you started. steps to get 1. Do your research First, make sure you understand the current market for your business. This step is crucial to turn an idea into a full-fledged business plan. Ask questions like: * Is this product or service in demand right now? * Are there similar products and services out there, and are they succeeding? * Can this product or service be delivered safely for employees and customers? * Could the business support rapid growth if it really took off? Ask other business owners about their challenges and rewards to explore whether this is a good option for you. Use market analysis tools recommended by resources
2. Write a business plan No business can find funding, investors or partners without a solid business plan. Learning to write a comprehensive plan also forces you to fully think through every aspect of your proposed idea. The SBA is a great resource to research types of business plans. Enlist the help of other business owners during the process if you can to understand how their plans helped them and what to avoid. 3. Fund your business Every business needs capital to get started. Your business plan's financial section should provide a clear idea of the capital you need to launch. Most businesses rely on multiple financial sources, including: * Personal funds * Bank loans or personal loans * Investors * Crowdfunding SBA loans can be a good option. For example, Huntington Lift Local Business is a small-business lending program focused on serving minority-, women- and veteran-owned businesses. Huntington is a top SBA 7(a) lender that has developed creative lending options and other features to help bring relief, recovery and growth to small businesses across the Midwest. With Huntington's program, businesses can secure SBA-guaranteed loans from $1,000 and up to $150,000 with: * Zero origination fees * SBA fees paid by Huntington * Lower credit score requirements
* Free financial education courses * Checking accounts with 24-Hour Grace overdraft fee relief, and service fee waived for 36 months * Flexible, longer-term repayment options
"The economic uncertainty sparked by the pandemic has highlighted the need for increased financial opportunity for everyone starting or sustaining their small businesses," said Huntington's SBA program director, Maggie Ference. "Everyone deserves a shot at success, and our program delivers a new solution to customers when they need it most, whether for a startup or an established business looking to grow." 4. Develop a marketing plan Creating a brand identity and communicating it well is crucial to success. Consider hiring or contracting marketing services to help you choose your business name, create a logo, build your website and develop a strategic marketing plan to get the word out about your business. 5. Take care of business Dotting the Is and crossing the Ts is necessary for any business. Details include choosing your business location and registering your business, applying for all the required licenses and permits, including federal and state tax IDs - plus opening your business bank account. Also, consulting an accountant with experience helping small businesses can ensure you have your business and financial ducks in a row. Starting a small business is a daunting challenge, but it can also be a rewarding opportunity. Taking the time to fully explore and utilize all the resources at your disposal can help ensure that your new business will be a success. Source: BPT
BUSINESS
PenFed Foundation Announces ‘Black History Month Ignition Challenge’ to Support Black Veteran and Military Spouse Entrepreneurs By d-mars.com News Provider
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he PenFed Foundation, a national 501(c)3 founded by PenFed Credit Union, recently announced the launch of the PenFed Foundation Black History Month Ignition Challenge. The challenge supports Black veteran, active duty, guard, reserve, and military spouse entrepreneurs by helping them to identify their business impact and goals, and providing an opportunity to compete to win funding and mentorship. "PenFed is proud to celebrate Black History Month and support the Veteran Entrepreneur Investment Program's Ignition Challenge for Black entrepreneurs," said PenFed President/CEO and PenFed Foundation CEO James Schenck. "The program is designed to highlight, celebrate and support Black veteran and military spouse entrepreneurs and their positive community impact." Proposals for new businesses and ideas can be submitted via the PenFed Foundation Veteran Entrepreneur
Investment Program (VEIP) website here through January 18. The VEIP Selection Committee will review all proposals and select the top 10-20 submissions. Participants' pitches and photos will be posted on the VEIP website and the community is invited to vote for their favorite idea February 1 through 17. The winner with the most votes will receive $15,000 in funding, while second place will receive $10,500 and third will receive $5,000. Additionally, VEIP staff will provide coaching and support to the winning entrepreneurs to help each fine-tune their business and help to further position them for future success. Today at 2:00 p.m. ET, PenFed Digital will host a live discussion on the PenFed Facebook page as part of the challenge kick-off. Thereasa Black, a US Naval Officer and VEIP Master's Program participant, will join PenFed Credit Union's Senior Vice President of Global Fixed Assets/retired US Marine Corps Brigadier General Terry V. Williams and PenFed Foundation's Director of Outreach/retired US Army Command Sergeant Major David M. Clark to share insights about her experience as a Black veteran entrepreneur
and CEO of Bon AppéSweet. "We're incredibly proud to work alongside veteran entrepreneurs and military spouses to empower them as they pursue their aspirations for civilian life and realize their career goals," said PenFed Foundation President and retired Army General John W. Nicholson, Jr. "This program provides a meaningful way to celebrate Black History Month and support veteran businesses and the greater Black and military communities." Founded in 2018, VEIP has a three-pronged approach to create a robust network for veteran-owned start-ups and businesses: 1. Investment of seed capital, providing access to other capital investment programs and connecting entrepreneurs to funders; 2. Preparation through the Master's Program, a year-long fundraising accelerator; and 3. Education through virtual and in-person Pop-Up Lab workshops. The PenFed Foundation was created in 2001 and, since then, has provided more than $38.5 million in financial support
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to veterans, active-duty service members, families and caregivers.
AboutPenFed PenFedFoundation Foundation About Founded in 2001, the PenFed Foundation is a national nonprofit organization committed to empowering military service members, veterans and their communities with the skills and resources to realize financial stability and opportunity. It provides service members, veterans, their families and support networks with the skills and resources they need to improve their lives through programs on financial education, homeownership, veteran entrepreneurship and short-term assistance. Affiliated with PenFed Credit Union, the Foundation has the resources to effectively reach military communities across the nation, build strong partnerships, and engage a dedicated corps of volunteers in its mission. The credit union funds the Foundation's personnel and most operational costs, demonstrating its strong commitment to the programs the Foundation provides. Equal Housing Opportunity. To learn more, visit www. penfedfoundation.org. Source: PenFed Foundation
