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Color Logo Charter Township of Ypsilanti A Community of Opportunity

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Once you’ve developed your business plan, you should have a clear understanding of the amount of money (or capital) you need to start and run your business. Many entrepreneurs and small business owners piece together their funding from separate places and at various times. If you need to raise or borrow money there are several options.

Borrowing money or debt financing requires repaying the loaned sum over a period of time, usually with interest. You might choose to go through traditional or nontraditional lenders – or some mix of both – to finance your business.

The importance of microloans for startups cannot be overstated. Often times, the needs of small business owners and the lending criteria of traditional banks are not aligned. Microloans are an especially good source of funds for businesses that have never borrowed from a bank, have less than stellar credit, or do not have any prior operating experience.

Ypsilanti Township Microloan Guide 2018

Investors or crowdfunding are very popular options to raise funding for a startup. Your investors might be people you know such as friends, relatives, and colleagues. Or they could be venture capitalists, investors who specialize in early-stage startup companies who are high-risk but have high potential.

 

Venture capital is a type of private equity, a form of financing that is provided by firms or funds emerging firms that are deemed to have high growth potential, or which have demonstrated high growth (in terms of number of employees, annual revenue, or both). Venture capital firms or funds invest in these companies in exchange for equity, or an ownership stake. In Michigan, investment occurs in a variety of sectors from information technology to alternative energy.

 

Logo MVCA greyThe Michigan Venture Capital Association is a great place to start your research into venture capital firms. One of the primary goals of the Michigan Venture Capital Association is to foster a collaborative entrepreneurial and investment community. Their Landscape Guide, can quickly connect people with capital, community, talent, and research.

michiganvca.org

 

Crowdfunding is a method of funding a project or business by raising small amounts of money from a large number of people. Each crowdfunding campaign sets a goal amount of money and a fixed amount of time in which to raise it. By sharing your campaign, you not only raise money, you also create awareness of your new business or product.

There are dozens of websites that allow you to create and share a crowdfunding campaign - a quick internet search will lead you to them. Pay close attention to fees and campaign rules to make sure you maximize your fundraising.

Charter Township of Ypsilanti  •  7200 S. Huron River Dr. Ypsilanti, Mi 48197  •  (734) 484 - 4700

Mon. - Fri., 8:30am - 4:30pm  •  Closed 12:00pm - 1:00pm daily