So by the way... I now have a number of opinions about small business incentives. And with all due respect, I wonder how many true bootstrappers - those with an idea, heart and discipline, just not (access to) capital, nor broad access to mentors or influential connections - had input on those our city touts. And I wonder just how much we truly empower those we claim can pull themselves up by their bootstraps (and out of generational poverty) through business ownership. Some thoughts, albeit lengthy and inclusive of a few unrealistic ones: -- Where are microinvestors for those not considered scalable? Maybe youre not going to go global in two years, or be bought for $1MM+, but you have a solid set of local customers that can keep you in business, and guarantee at least 3-5 jobs. $25k-$50k would mean the difference in viability in the startup stage. Isnt this less of a risk than putting $100MM+ into a grandiose project (especially one that will at best create 300ish jobs)? Put $1MM (or less) into microinvestments across myriad diverse businesses, like one diversifies ones stock/401k portfolio to mitigate risk. -- Reduce barriers. The MLGW commercial deposit is based on an equation along the lines of 2.5x the second highest bill of the prior tenant in the space. For me that totaled $1800. As statistically many business fail prior to the point where their deposit is refunded... couldnt it be lowered? Or how about all of those governmental filing fees required even if you arent yet open, much less profitable? -- Totally unrealistic, but a way for a bank to guarantee startup business accounts: allow up to 3-5 business days to charge an overdraft fee for the first six months. In the early days, youre daily balancing expenditures while crossing your fingers that a payment arrives in time to get to the bank by 1pm. Those $35 fees add up very quickly when living day by day, but if you treat me well in the beginning then Ill stick with you when consistently in the black. -- Stop saying you offer loans to high risk applicants when you dont. If this is a brand new, pre-revenue business, an applicants personal income and credit score are paramount. If youre in the disadvantaged urban core, you might not qualify. If you quit your job to go all in with your venture, you probably wont qualify. Not everyone has a wealthy partner or lien holder. Even in my case, I have to leave my husband out of it because we need someone in the household to maintain strong credit and lack of debt... because I cant have both business and household go down in flames. -- WHERE ARE THE MENTORS? In fairness, there are groups like Start Co. and the EPIcenter that are working on this. But while a two hour workshop on financials is sincerely valuable, it isnt the same whatsoever as the connection to a CPA who can walk me through customized questions and issues. Like it or not, connections matter. A lot. This list isnt exhaustive. And I realize some will disagree with my suggestions (aside from those just flat-out bored by this status - haha!!). But... its a growing personal frustration beyond my own personal experience. So if were going to do it, lets do it.
Posted on: Wed, 10 Dec 2014 05:00:33 +0000
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