Small business owners are being celebrated this week, but many say the funding they've received still isn't enough.
Hello Alice co-founder and president Elizabeth Gore, who also hosts the Yahoo Finance podcast "The Big Idea with Elizabeth Gore," breaks down how entrepreneurs can access grants, loans, and smart credit options to keep their businesses growing.
Yahoo Finance's The Big Idea with Elizabeth Gore takes you on a journey with America's entrepreneurs as they navigate the world of small business.
To watch more expert insights and analysis on the latest market action, check out more Wealth here.
This week marks National Small Business Week, celebrating small business owners and what they add to the economy in the US. But according to a survey from small business majority, while half of US small business owners applied for some form of funding, just 1/3 say the funding they received was sufficient. Luckily, there are resources that can help, and here to break down some of the options, we've got Elizabeth Gore. Hello Alice, co-founder and president and host of the Yahoo Finance podcast, the Big Idea. Elizabeth, good to see you here. So, so Liz, how much should owners plan to have before starting their business?
Well, howdy. You know, I I love to have a year's worth of expenses in the bank. I I know that seems like a lot, but these days with capital so expensive, if you really can have 12 months of running capital, and that includes the receipts you're planning to bring in, but I really think that's a wise choice.
And so, what are some of the grants that are available?
Oh, I we love small business grants at Hello Alice. So we have $8 million right now, ready to deploy on our website at helloalice.com. I love, um, grants that you can find through the SBA. If you go to sba.gov, and also, most of the times, your city, state, and counties, Economic Development boards might have grants. So definitely look at those because they're not going to dilute your business. Now, the applications might be tedious, but it is worth it.
What about loans? How can small business owners come across the loans that are available to them?
You know, I'm a real fan of community banks. So wherever your business is, I would walk into three or four of the local banks if possible. I think that's where you're going to get the best relationships, the best rates. Really head in there and get those business plans in front of folks so they can see what you're trying to build for their community.
So, when we think about how they are ultimately going through the operations, day in, day out, what are the dos and don'ts of business credit cards?
Oh, you know, um, I think credit cards get a bad name sometimes. I'm a big fan of using operational credit the day you start. So business credit cards where you're own you're earning cashback, you're earning rewards, you're getting discounts, but you got to pay those off every month. But you want to earn and build while you're growing your business. Just make sure to pay those off. Don't sit on them.
Certainly. And so, should small business owners change their strategy with economic uncertainty that they have to really navigate through, and how how severe does that strategy change at times?
Look, your strategy should change every quarter. I don't care what's going on in the world. You need to iterate based on what your consumers are doing, what their behavior is, what's the market doing, what are trends. And so yeah, every quarter. Now, right now, I would be very conscious of applying for anything. Capital is expensive. So really see if you can have money where it is, which is your own costs, lowering those and increasing growth by just trying to sell, sell, sell is, I would be cautious right now to apply for much.
