Where Does a Mompreneur Go When She Needs Funding?

What's a Mompreneur to Do When She Has a Great Idea and No Way to Fund It?

What’s a Mompreneur to Do When She Has a Great Idea and No Way to Fund It?

What’s a mompreneur to do when she has a great idea and no way to fund it?

If you’re like me, I started at the bank and asked for a SBA loan. I had just come off a good run in SkyMall where my Stikitty sold over 700 units. I made enough money to buy more inventory, but didn’t have enough to do any additional advertising.

And, I had a great idea for a new product. Something that would extend the performance and the appeal of the Stikitty. Better yet, it was something I could patent.

But I needed money.

I had tapped out my own funds, and those of my friends and family, with the launch of the Stikitty.

So I went to my business bank and applied for a small business loan, to be backed by the Small Business Administration. (Side note for mompreneurs: the SBA doesn’t actually loan money to entrepreneurs. They offer protection to the bank in case the entrepreneur defaults on the loan. It’s a way to make it less risky for banks to take a chance on entrepreneurs).

My banker was fantastic. He did everything he could to help me get the loan. Unfortunately, what he couldn’t do was create cash flow for me. Before banks will give you a loan, they want to see that you have enough cash flow to pay back the loan. Of course, if I’d had cash flow, I wouldn’t have needed the loan!

My sales from SkyMall were great, but I hadn’t started another run with them yet as I was building back up my inventory. Despite my proven potential, I didn’t have immediate cash flow.

Rejected, I went to Plan B.

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