Find the (non-traditional) funding method that's right for you.

Preparing for Class

Review the Sample Project.
Before getting started, review the Sample Project in the Project Gallery.
Give your Project a title.
Set-up your Project with a title that describes your business goals.

Here's a few examples: "Launch Fitness App for Personal Trainers" or "Introduce line of stylish, sustainable men's watches".
Add a picture.
Add a picture that relates to your business, products/services, or funding goals.
Cut and paste this content into your Project.
We've tried to make it easy for you... to layout your project, cut and paste the following content into your project board.

SECTION 1 :: DESCRIPTION

A. Description of Funding Goal(s):

B. Breakdown of Funds Requested:

C. Total Capital Required:

SECTION 2 :: RANK THE METHODS
The following funding method are ranked from best fit to worst fit (best being #1, worst being #6).

Method Score

1.

2.

3.

4.

5.

6.

SECTION 3 :: IDENTIFY YOUR NEXT STEPS

Method:

Next Steps:

1.

2.

3.
Fill in 'Section 1' of your Project.
Complete Section 1 of your Project to get started.

Friends & Family Funding

Review the Snapshot
Snapshot: How F&F contributions work, who is a good fit, and the main pros and cons.
Review the Structure & Key Decisions
Structure & Key Decisions: Things you'll need to think about with this funding method.
Listen to these interviews
Interview 1: Amanda Steinberg, Founder & CEO, DailyWorth

Amanda dives into mixing money and loved ones. (14 min)

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Interview 2: Kimberly Martinez, Co-Founder & CEO, Bonitas Int'l

Hear from Kimberly about her experiences with friends and family contributions. (33 min)
Review the checklist of what you'd need to prepare.
What You’ll Need: A list of the items you will need to prepare in order to use this funding method.
Determine if Friends & Family Funding is a good fit.
Download the Self-Test and complete 'Friends & Family Funding' to find out if this funding method is a good fit for your business.

Write your score in Section 2 of your Project. It will be in the #1 spot for now, but you'll rank the methods accordingly as we go forward.

Save the self-test on your computer and continue to fill it out until each module is complete. You will record all of your scores in your project.

Confused? Refer to the Sample Project for guidance.

Microfinance Lending

Review the Snapshot.
Snapshot: How microfinance works, who is a good fit, and the main pros and cons.
Review the Structure & Key Decisions.
Structure & Key Decisions: Things you'll need to think about with this funding method.
Listen to these Interviews
Interview 1: Rachel Greenwald, Loan Consultant, Accion East

Rachel talks about how to use microfinance for your business.

Please note: Rachel is no longer with Accion East, so the email address provided in this interview is no longer valid.

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Interview 2: Isela Hernandez, Founder & CEO, Hernan

Hear from Isela about her experience with micro-lending.
Review the checklist of what you'd need to prepare.
What You’ll Need: A list of the items you will need to prepare in order to use this funding method.
Determine if Microfinance is a good fit.
Reference the Self-Test and complete 'Microfinance Lending' to find out if this funding method is a good fit for your business.

Write your score in Section 2 of your Project. Does it bump F&F off the number one spot? Re-order the list as necessary, according to your self-test scores.

Refer to the Sample Project for guidance.

Crowdfunding

Review the Snapshot.
Snapshot: How crowdfunding works, who is a good fit, and the main pros and cons.
Review the Structure & Key Decisions.
Structure & Key Decisions: Things you'll need to think about with this funding method.
Listen to these interviews.
Interview 1: Jay Lee, CEO, Smallknot

Jay shares his expertise about small business crowdfunding and how to engage your supporters.

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Interview 2: Jessie Baxter, Co-Founder, I AM

Hear from Jessie about her experience with crowdfunding on Kickstarter.
Review the checklist of what you'd need to prepare.
What You’ll Need: A list of the items you will need to prepare in order to apply for this funding method.
Determine if Crowdfunding is a good fit.
Reference the Self-Test and complete 'Crowdfunding' to find out if this funding method is a good fit for your business.

Write your score in Section 2 of your Project. Re-order the list as necessary, according to your self-test scores.

Refer to the Sample Project for guidance.

Peer-to-Peer Lending

Review the Snapshot.
Snapshot: How P2P lending works, who is a good fit, and the main pros and cons.
Review the Structure & Key Decisions.
Structure & Key Decisions: Things you'll need to think about with this funding method.
Listen to these interviews.
Interview 1: Brad Lensing, CMO, Prosper

Brad gives us the low down on borrowing from peers.

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Interview 2: Peter Renton, Founder, Lend Academy

Hear from Peter about being on both the borrowing and investing side of peer-to-peer lending.
Review the checklist of what you'd need to prepare.
What You’ll Need: A list of the items you will need to prepare in order to apply for this funding method.
Determine if P2P Lending is a good fit.
Reference the Self-Test and complete 'Module 4: Peer-to-Peer Lending' to find out if this funding method is a good fit for your business.

Write your score in Section 2 of your Project. Re-order the list as necessary, according to your self-test scores.

Confused? Refer to the Sample Project for guidance.

Factoring/PO Financing

Review the Snapshot.
Snapshot: How factoring and purchase order financing works, who is a good fit, and the main pros and cons.
Review the Structure & Key Decisions.
Structure & Key Decisions: Things you'll need to think about with this funding method.
Listen to this interview.
Interview 1: Tal Malachovsky, Factoring Specialist, Riviera Finance

Tal talks about factoring for your business.

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Determine if Factoring/PO Financing is a good fit.
Reference the Self-Test and complete 'Factoring/PO Financing' to find out if this funding method is a good fit for your business.

Write your score in Section 2 of your Project. Re-order the list as necessary, according to your self-test scores.

Confused? Refer to the Sample Project for guidance.

Business Incubators

Review the Snapshot.
Snapshot: How incubators work, who is a good fit, and the main pros and cons.
Review the Structure & Key Decisions.
Structure & Key Decisions: Things you'll need to think about with this funding method.
Listen to these interviews.
Interview 1: Micah Kotch, Director, NYU Poly Incubators

Micah talks to us about the growth possibilities that come with being part of an incubator.

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Interview 2: Tanya Menendez, Co-Founder and COO, Maker's Row

Tanya shares her experiences working in an incubator.
Review the checklist of what you'd need to prepare.
What You’ll Need: A list of the items you will need to prepare in order to apply for this funding method.
Determine if an Incubator is a good fit.
Reference the Self-Test and complete 'Incubators' to find out if this funding method is a good fit for your business.

Write your score in Section 2 of your Project. Re-order the list as necessary, according to your self-test scores.

Confused? Refer to the Sample Project for guidance.

Making Your Final Funding Decision

Choose your winner(s)
What solution is in the top spot? Or do you have two you will combine to achieve your goals?

Write the winning method(s) in Section 3 of your Project.
Identify next steps
In Section 3 of your project describe the next 3 steps you must take to make your funding plan a reality. Do this for each funding method you plan to pursue in the next 6 months.

Confused? Refer to the Sample Project for guidance.
Go do it!
Get out there and start taking action steps towards your funding goals. Need support as you go forward? Use the Q&A and Project sections of our classroom to continue to get feedback and support from peers.

GOOD LUCK!

Additional Resources

Lending Karma – Create legally-binding loan promissory notes, track repayments and more.

Caplinked – Create documents fore more complex business transactions like equity investments, mergers, and acquisitions.

Amortization-Calc – Tool to calculate amortization schedule for loans.

Tap Into Your Network for Business Funding – How to organize and sort through personal contacts to find the best potential F&F investors.

How to Write A Promissory Note – Tips for formalizing loan agreements between family and friends.

How to Value a Young Company – Several strategies for figuring out how much your company is ‘worth’.

How to Create an Investor Presentation – The basic information you should share with potential investors.

Equity Financing for Small Business – Various business formations and how they can be used to raise capital for your business.
10 Top Microfinance Companies – CNN Money reports on their top 10 picks in the world of microlending.

SBA – Information on microloans from the Small Business Administration

New York Times – Collection of archived articles on microfinance

With Squeeze on Credit, Microlending Blossoms – The rise of microfinance in the United States.

Microloans Could Be Answer to Financial Troubles – How micro-loans are now fighting poverty and supporting entrepreneurship in the developing world.
Top 10 Crowdfunding Sites - Forbes list of the top crowdfunding platforms

Ten Crowdfunding Websites for Entrepreneurs - Another top 10 list geared towards the entreprenuerial community.

7 Strategies for Lauching a Successful Campaign - Tips and tricks for crowdfunding well.

Crowdfunding and Taxes - Educate yourself about the tax ramifications of crowdsourcing funds.

Crowdfunding Tax Consequences - Another suggested read about taxes should you use this method.
Crowdfunding Sites for Fashion Entreprenuers

Before the Label

BetaBrand

Luevo

Crowdemand
Lending Memo - A rundown of P2P lending sites and resources in North America

Lend Academy - "Teaching the world about P2P lending"

"Best of the Best" - Forbes runs through a list of the best social lending sites

Top 10 Social Lenders in Europe - Forbes gives it's top picks for Europe

Peer -to-Peer Lending Offers Alternative to Banks - P2P on NPR's All Things Considered

Peer to Peer Lending by Kiva – Kiva’s new project Zip, allows people to lend money to one another in a crowdfunding/P2P hybrid structure.

Google Dives In - The rise of P2P lending and Google's big investment in Lending Club
Additional Sites and Articles

Factoring Companies - Database of US-based factorers by industry.

How to Choose between PO Financing and Factoring - Info to help you decide which is a better fit.

Why Businesses Turn to Purchase Order Financing - An article on Amex's OpenForum.

How to Find the Best Factoring Company for Your Business - Ladies Who Launch breaks it down.

5 Things You Should Know About Factoring - AOL Small Business provides it's take on the Factor route.
National Busiess Incubator Association: Find a business incubator near you.

Top Incubators: Profiles of a range of different programs

Choosing an Incubator: Tips to keep in mind!

Business Incubators: A detailed description of this growth tool

5 Ways to Vet an Incubator: Not all incubators are created equal...

Liz Long

Consultant to Product Makers

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