Single Mom Wants a Business
Dear Gil,
I am a mother of two wanting to start a business of my own. I desire to start a professional Daycare Center and I am interested in getting government grants, etc.. in order to proceed with my dreams, but I do not have the assitance that I need. Is there anything that I can do being the black woman that I am to sucessfully create a business that I can be proud of?
Sheronda
Dear Sheronda,
The first thing is to make certain that you've done everything required in your state and locality to be able to legally operate a professional day care center. Once you've dealt with logistics and operations, government grants will be easier to obtain. Usually, they come in the form of food assistance from the USDA. It can also come in the form of training and mentoring.
If, however, you're looking for grants to get things started, its not necessarily going to be that easy. There isn't much by way of "free money" out there for businesses to start up. Most government programs, at best, help to minimize interest rates through participating lenders and act as a liason between you and the bank.
You might want to make contact with local women's organizations to see if any might have grants available.
In any event, the first thing you'll want to do is put a list together of the costs associated with getting things set up (cost of obtaining a location, renovation, childproofing, equipment, educational materials, supplies, advertising, etc.). Then, you'll want to project your monthly expenses and fees to figure out how many children would be required to cover your expenses (including paying yourself, of course).
Once you've outlined the costs and ongoing expenses, you'll have to be really creative in raising the money to get things off the ground. If you're confident in your idea, do whatever it takes--bake sales, savings, cutting back on some of your normal expenses, where possible. There's no shame in "going all out" to realize your dreams. Truth be told, people admire that. Some might snicker and discourage you, but remember that Cathy Hughes went from sleeping on the floor in her radio station to over $300 million dollars in revenue.
As far as loans or investors, no one necessarily throws money at a new business. Investors must be convinced that they can see a return on their investment. Talk to people you know and offer them a repayment of their money in a definite period of time or a small stake in the business. Again, the key is to be creative. Not many successful business have their origins in using traditional methods of getting off the ground.
Good Luck and Stay Determined!!!