Ok, so you have a great concept and want to run with it.  Do you quit your day job? 

After all, there are plenty of grants and loans available for young entrepreneurs, particularly Hispanic ones, right? And there are plenty of investors (venture capitalists, angels, etc) just looking to invest, right?

Well...exciting concept but...wrong.  There are NO grants available (well, few...) unless you are in areas like research, medical or non-profit.  The reality is that very few loans are available to pure start-ups (that is, concept stage companies building their product vs. in market companies already generating revenue.) Same story for the SBA (Small Business Administration) loans.  Really! And to get equity capital you not only need a solid business plan but a product in-market with a proven revenue model(or at least a "proof of concept" if you have e.g. a patented product)

In other words, you need money to launch your business to get money to grow it.  The current climate in banking has not helped.  The collapsing sub-prime lending market has hurt all, good risk customers included, making banks even more strict in their lending policies. 

There are too many "myths" about financing so budding entrepreneurs beware! Save up, do your homework and don't fall into the "anyone can start their own business with no money down" trap! However, if done right, it is one of the most rewarding personal and professional experiences.

Have you ever started a biz?  We'd love to hear your story!  

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