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What is a minority-owned business?

In order to be considered a "minority" in the world of small business, you must be at least 25%...

• African-American
• Hispanic-American
• Asian-American
• Pacific Islander
• Alaskan Native
• American Indian

Women-owned businesses, on the other hand, are another category.

In order for a business to qualify as minority-owned, it needs to be at least 51% owned by a person or persons from one of those groups.

Additionally, you’ll often need to be certified as a minority business enterprise (MBE) or a disadvantaged business enterprise (DBE) in order to qualify for certain loans or grants.

That’s not the case for all loans and grants, however, so make sure it’s a requirement before going through the process of gettin...

"Do I bet the farm or hold it all back?"

We often wonder whether every dollar of our personal savings should be going toward our startup, or toward our safety.

On the one hand, if we don't bet our cash on our startup, we're starving the very thing we need to grow with. On the other hand, if we spend that money, we'll never be able to sleep at night knowing our safe landing has been pulled away.

So do I spend it or save it?

Don't spend it all. Seriously — don't.

There's a point at which depleting all of our savings and personal cushion works against us. We start shifting our focus from "growing the business" to "surviving personally" (more than it already is!) and at that point, we're in a downward spiral.

How much do I keep in savings?

I...

Most startups don’t fail because they lose money. The downward spiral starts much sooner when entrepreneurs let managing their financials fall by the wayside. In fact, a CB 2018 Insights report found that 29 percent of small businesses failed because they ran out of cash, perhaps a result of poor money management by leadership.

Not everyone has the aptitude for financial management. Still, startup owners agree it’s a necessity.

Why your bottom line could bottom out

Over the years, my company has seen a pattern with startups: Just as they hit their stride and growth takes off, they begin struggling with financials. There are many reasons for this paradox, including expanding into new verticals too quickly and failing to acknowledge the fina...

Running a non-profit can be a tremendous challenge. Those who are deep in the planning and execution of campaigns understand the magnitude of their efforts – and the consequences of poor execution.

Day in and day out, organizations are struggling to move the mission forward, encouraging their volunteers to raise donations and bring in more support. It’s an uphill battle, as evidenced by the steady decline in charitable giving since 2015, per the Blackbaud Index.

Growing an organization in our digital age, when contributions are down, is a challenge that requires a more tactical approach than just marketing. It requires a complete audit of operational processes, while also looking at ways to streamline donor outreach.

Because so much of what...

Many startup founders find themselves taking out their first business loans as they’re working to get their company launched. But, like so many other things in the startup world, it can be really harrowing to approach first time business loans — because you haven’t done it before! So here’s your comprehensive guide to first time business loans, including what to expect, how to prep, where to find them, and how to apply.

Should startups apply for first time business loans?

Unfortunately, first time business loans can be difficult for startups to procure. That’s because while some funding sources in the startup ecosystem — like VCs and angel investors — are looking to take big risks, traditional financial institutions like banks generally ar...

Like a lot of ambitious young women, Lisa Wang, co-Founder of the female entrepreneur networking group and community SheWorx, didn’t think that her gender was holding her back — until it did. Lisa’s first career was as a US National Champion Hall of Fame gymnast, where she was surrounded by talented, competitive women. This was followed by a short-lived career as an equity research analyst right after college, but chafed in that highly-structured environment. So, like so many talented millennials before her, she turned to tech.

“I realized that the work I was doing in finance was simply not aligned with my values,” Lisa tells Startups.co. “Having creative ownership, autonomy, and making a clear impact that aligned with my personal mission w...

While we may not know all there is to know about our business yet, there’s still going to be some good old-fashioned accounting to do. So let’s break out those green visors and add machines — it’s time to learn WTF accounting is!

At its core, in order to be an accountant we need to be able to collect all the sources of income and expenses and translate those into a spreadsheet. When the numbers are small, this is so easy to do we’ll wonder why people get paid to do it. When they get large, we’ll wonder why anyone is willing to do this for any amount of money ever!

Can any Founder do Accounting for Startups?

Yes! Because accounting for startups in the early days just isn't that complicated yet. Even if we've never seen any financial statements ...

As mentioned briefly above, there are multiple valuation methods to value a startup, and one not mentioned (but worth noting since this is arguably the most common startup valuation approach) is the Venture Capital Method that was developed in 1987 by Bill Sahlman.

If working with a venture capital firm, you should know how they calculate valuations. Venture capital firms use this valuation method to establish an understanding of the value of a startup using this basic framework. In addition to the venture capital method, a VC Term Sheet is used to define the specific conditions of venture capital investments between an early-stage startup company and the venture firm itself.

Looking for minority business loans? You’re not the only one. It’s no secret that the tech world is overwhelming male and overwhelming white. Study after study has shown that not only do underrepresented groups pitch less to angel investors and venture capitalists, they also receive less money when they do pitch. And when it comes to loans? Same problem. Underrepresented groups consistently receive less money than white men on loans.

For example, a 2014 study from researchers at Brigham Young University recruited nine “mystery shoppers” to go and seek small business loans. Three were black; three were Hispanic; and three were white. They all wore the same clothing, had nearly identical backgrounds, and asked for $60,000 for identical busine...

How Hard is it to Get a Business Loan?

Unfortunately, business loans can be difficult for startups to procure.

That’s because while some funding sources in the startup ecosystem — like VCs and angel investors — are looking to take big risks, traditional financial institutions like banks generally aren’t.

You’re going to need to show that you have perfect personal (and probably business) credit and they might even require that you’re profitable or on track to become profitable. Generally, banks prefer businesses that have a proven track record when they’re handing out loans.

But that doesn’t mean business loans are impossible for startup founders! It’s just something to keep in mind when you’re considering a bank loan as a funding source.