Show Me the Money: How to Get Funding and Scale Your Creative Business​

Arielle Loren is the founder of 100K Incubator—the first business funding mobile app for women in both Apple and Google’s app stores. The story was part of her “Show Me the Money” workshop held at the Create & Cultivate Vision Summit in Miami.

Photo: Courtesy of Arielle Loren.

UNDERSTANDING CAPITAL AND HOW IT WORKS 

(aka why your creative business needs money to scale!)

There are three categories of funding: grants, equity-based investments (what most investors require), and debt-based funding (business loans, lines of credit, etc.)​

Let’s talk about debt though… there’s a difference between consumer debt for vacations and clothes—and strategically using a business loan as working capital for your business.​

For example, if you charge a bunch of clothes on your credit card, those clothes can’t make you money and help you pay that back. You have to go to work and actually do that.​

But if you invest the $5,000 you received from a business loan and turn it into $15,000 in sales, that means there’s a $10,000 gross profit. Now that’s worth considering a business loan, and it’s that mindset that you need to have when considering all funding options for your business.

PREREQUISITES FOR FUNDING 

(aka what you need to get your money!)

• Funding Budget ​

• 50-70% Advertising or Direct Revenue Generating Activities
  30-50% Infrastructure—Sales Funnels, Photo and Video Shoots, Websites, Consultants, etc.​

• Average Personal Credit Score​

• Minimum 620 and up​

• Register Your Business Entity With Your State Government ​

• LLC, S-Corp, C-Corp ​

• Save money by registering directly on your state government’s website ​

• Register Your Business for an Employer Identification Number (EIN) with the IRS ​

• This is 100% FREE at irs.gov​

• Open Your Business Bank Account ​

• Your Personal Finances and Business Finances Cannot Be Co-Mingled​

• File Your Taxes and Annual Report​

​

THE 3 LEVELS OF FUNDING 
(aka figure out where your business stands for the highest approval rates!)

Level 1: Zero (aka pre-revenue) to $3,000 per month in sales​

• Business Credit Cards​

• Personal Loans​

• Home Equity Loans or Lines of Credit​

• Crowdfunding​

Level 2: $3,000 or more per month in sales​

• Pitch Competitions​

• Business Grants and Government Contracts​

• Government Small Business Loans​

• Payment Processor Loans​

• Private Business Loans​

• Business Lines of Credit​

Level 3: $9,000 or more per month in sales​

• Angel Investing​

• Venture Capital​

About the Author

Arielle Loren is the founder of 100K Incubator, the first business funding mobile app for women in both Apple and Google’s app stores. She’s helping 100,000 early-stage women entrepreneurs get funding for their businesses and scale to 100K+ in yearly sales. She is also a graduate of Harvard University, where she holds a master’s degree in Management and graduate certificate in Strategic Management. Additionally, she also holds a graduate certificate in International Business Management from Georgetown University and a bachelor’s degree in Social and Cultural Analysis and a certificate in Producing from New York University.

Visit 100kincubator.com for more information, download the app, and start your free trial.

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