A great article was recently posted on Entrepreneur.com titled "Creative Financing." The article outlines some places a business can begin when looking for financing. Below are the six places Entrepreneur.com suggests a business begin. We've added some links of Chicago specific resources that fall under these categories.
- Grants -Typically grants are reserved for nonprofit organizations. However, with the growing trend of social enterprises emerging, grants may be a great place to get seed funding for your revenue generating idea. Check out grants.gov for local opportunities.
- Business Plan Competitions - There are several business competitions hosted throughout the city during the year. CCV is currently managing the City Treasurer's Business Plan Competition. Winners of this annual competition will be announced in July.
An upcoming competition is the Citi Foundation Business Plan Contest. For contest information call 312.673.3429 or pamlipton@jvschicago.org. Other competitions to be aware of throughout the year include Innovate Illinois which opens it application this coming Thursday, June 18th and Sustain Illinois which begins accepting applications in February. - Microloans - Often small business owners don't need a large loan to get their business off the ground. Microloans fill the space of providing loans that are typically $35,000 and less. A great partner of CCV's is ACCION Chicago who has been making a considerable impact on Chicago small businesses throughout the years.
- Local Incubator/Accelerator Groups - The purpose of these groups is to stimulate the economy in their communities. Many small business incubators will be focused on a certain area, like the Fulton-Carroll Center which houses 125 small business tenants in the Kinzie Industrial Corridor. Check out a full list of Chicago based local incubator groups.
- SBICs - Small Business Investment Companies provide equity capital and long-term loans to small businesses. BusinessWeek recently wrote an article about SBICs revived popularity in recent months.
- Traditional Funding - Lastly, the Entrepreneur.com article points out that more than a quarter of all start-ups get their funding from family and friends.
We know that for many start-ups it can be overwhelming where to being, which is why CCV's services are always available to the Chicago small business community. If you are looking for funding and aren't sure where to start we encourage you to reach out to our office and we can put you in touch with one of our talented counselors.
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