Financing Your Small Business in a Tough Economy
August 11 2011
Small businesses are still struggling to get financing, and that has manyentrepreneurs wondering how to go about getting the cash they need to eitherstart or maintain their business.
“These days you’re more likely to win at roulette
than to secure a business lo
an,” said Mike
Michalowicz, entrepreneurial advocate and author
of “The Toilet Paper Entrepreneur.”
Nearly two-thirds of privately held businesses saidthey were denied by banks when they applied for aloan, according to a recent Pepperdine Universitysurvey.So, many entrepreneurs are having to get creative when it comes to raising money.
When Andy and Rachel Berliner started their frozen food business, Amy’s
Kitchen, they had no choice but to get creative.
”We didn’t have any money. We borrowed on Rachel’s car,” Andy Berliner said.“I sold a gold watch someone had given me years before, and borrowed a little bitfrom family.”
After they got things started, the Berliners went to a bank for a loan and broughtalon
g their product for a tasting. The bankers were hooked. Now, Amy’s Kitchen
is an established business that makes over 150 products and expects its sales to top$300 million for 2011.