Get $ for your Start-up; Think Outside-the-Box

Whether you have a for profit or non-profit business in its initial stages, one thing is certain: you need some money. With our current economy and tightened lending criterias, it is time that every startup business owner thought outside-of-the-box.

I ran across a few companies that could help in your
"outside-the-box" fundraising strategic quest and thought I'd share them with you:

Virgin Money. (http://www.virginmoneyus.com/) Founded by Sir Richard Branson of Virgin Records, Virgin money is a social lending online company that focuses on helping family members and friends lend to entrepreneurs. Ever had the feeling that your friend or family member may want to lend you some money but he/she is hesistant due to the possibility of ruining the relationship? Well Virgin Money helps take away the pressure by adding a third-party.

With their packages that range in price from $199.00+, they create a formalized loan structure that takes place as if there was a bank involved. For example, if your aunt wanted to lend you $10,000, she would sign up with Virgin Money, they would create a:

1. Promissory note
2. Payment Structure
3. Year-End reports
4. Online access
5. Collateral Agreement (if necessary)

Better yet, you and your aunt could decide the interest rate and payment start date (even if it was not due for a few months to give you the chance to build some revenue!) Plus, Virgin reports your payment information to the Credit Bureaus to allow you to build some credit.My favorite part of the whole process is that you have flexibility. Unlike a bank, were you to have any financial troubles, you could contact your lender/aunt and ask for a grace period and this period is determined only by the both of you.

Acumen Fund. (http://www.acumenfund.org/) Starting a business to help poor people but unsure how to get funding? Acumen is a non-profit organization that "raises charitable funds to invest equity and debt in enterprises serving low-income people". So if you're starting a business that would help combat global poverty in one of these four areas, you could research Acumen to see whether your company would be a good fit to get funding:

• Water. Your company would have to be involved in making safe water accessible to low-income people around the world.
• Health. If you provide or plan to provide lowered health costs and easy accessibility to low-income people you may be eligible to be a recipient of Acumen Funds.
• Energy. Your company would have to provide energy and energy renewal services
• Housing. Your company would have to provide housing and financing innovation for the poor.

You may also want to check Acumen's websites for the businesses and countries they assist.

Red Swan. (http://www.redswan.com/) Red Swan offers women a "fun, easy and profitable way to convert their unwanted jewelry into currency for meaningful change, whether in their own lives or for charitable causes". If you're starting a non-profit business or charity, this is a great way to raise some money for your organization.

Here's how Red Swan works, you request a kit >place your old jewelry in the kit with paid-for postage > receive a check from Red Swan. If you own a non-profit, you can have your friends or guests donate an item and Register your Organization so that their payment gets directed to your 501 (c) (3) organization. Or, you can become a Group Lead and host regular Red Swan events at your place, have women come over and donate jewelry, and get paid a commission from Red Swan to help fund your business.

In the next few weeks, I will update you on similar funding sources for your business. In the meantime, if you know of any worthwhile similar companies, please feel free to share here.



About the Author: Cheryl Isaac is the writer of this blog and the Startup Business Consultant & Owner of Isaac Business Services; an agency that offers startup concierge & business planning services for small businesses.