How to find capital to build a business in the United States as an Immigrant
How to find capital to build a business in the United States as an Immigrant
Everything you should know about if you want to build a business in the United States as an Immigrant
Owning a business is one of the dreams of many people, but this dream finds some adversity when you try to invest outside your country of origin; when you want to start a business as an immigrant, what usually supposed to be a difficulty task gets complicated a little more.
If you are from Mexico, for example, and you want to set up your own business in the United States, having good credit score or record in your home country, or even funding, may not be applicable in the United States. You cannot pack your credit score and your good recommendations with you, so getting a credit can be a bit more difficult.
Normally, when people leave their country to another, they carry capital to invest, but if this is NOT your case, you should continue reading. In today’s post we will talk everything you need to know to start your own business in the United States as an immigrant and even how to raise capital to start your dream.
If You Want To Invest In The United States Never Make These Mistakes
It is essential before even thinking about investing to go one step at a time. Going to a country with different customs and laws to invest is not easy and you should inform yourself. Then, I’ll tell you about the mistakes you should not make if you want to invest in the United States.
Never do it without professionals’ advice and consulting
If you have already decided that you want to start a new life and invest in the United States, the first thing to do is to get advice from professionals. Do not think of improvising or leaving everything at large. Inform yourself with a competent entity and trace a plan. If you do not do this, something that is difficult, can complicate much more.
You need a reliable team of consultants such as: lawyers, accountants, market analysts and even have relationships with regulatory bodies.
Do no lose your legal status, you can lose it all
It is important before investing to initiate the legal processes to obtain the visa that corresponds to you, in order not to have problems in the future and perhaps losing the investment. In a later section we will talk about the visas that you can choose if you are going to invest in the United States and you are an immigrant.
Do not think that business kills visa
There have been cases when people who have invested all their money in a business in the United States but have no legal residence permit, have had to leave their business and return to their country.
If you can, first get a legal status and then start your business, or at least do both at the same time.
Do not trust everything the internet says
Many believe in everything the internet tells them, but do not fall for this mistake. You must go to the proper authorities to obtain a legal status. One of the most important things to start your business in the United States is to be resident in the country, once you do this, you can get capital more easily.
Therefore, you should consult with professionals who can provide you with effective solutions. Avoid street lawyers or online consulting, you must have an immigration lawyer to advise you and give you options. Accountants can tell you where you can start. All these procedures must be corroborated with the relevant authorities.
Analyze your market objectively, forget what you believe and focus on your new reality
Many people believe that they can move the business they had in their home country successfully to the United States, although many times this have worked, others have failed in the attempt. So, before you start your millionaire business, investigate and evaluate its path.
You should take into account that the market there and your prospective consumers are very different from what you are used to. The legal and accounting issues are also different. Therefore, you must make a complete evaluation.
Save, do not spend your capital on luxuries
Many think that the United States is the promised land, where once a business is set up, they can swim in a pool of money. So they get to buy the best car on the market, squander on a big house and things like that. You have to invest with fear, because you are in an unknown country and you still do not know how successful your business would be. You need to spend cautiously.
When your business starts to thrive, the thought of luxuries might become a reality, other than that, save money.
If you are going to the United States to do business, focus on this only
You can find yourself in the situation that once you came to the United States tyou bought a house, and now you are pursuing the business of your dreams, but it turns out that you are away from your home and from your children’s school. Research before you settle.
Try to have everything nearby, it will save you time that you will need to start the business of your own dream.
Do not start from zero
It is difficult to start a business without capital as an immigrant, but with the right advice you can do it. However, if you do not know the market which you pretend to serve, you might get in a difficult situation. Inform yourself, create a business that you can dominate and it will be easier to take it to the next level.
Thinking that you will invest a few hours and make a lot of money
Remember that you are in a new country, different from yours and you need to start from scratch. You will work for many hours and not make so much money at first. You will have to stand out for your customer service and of course, this will create a word of mouth.
If you want to succeed you must work. If you just demand from others, you are likely to fail.
You are in a new market, and you will have to work harder. Nobody comes in red carpet so forget about you success in your country, and think of how you will make your business thrive here.
Ask for advice during business selection
You came to a new country and you do not know the market, let’s say you have the idea of selling Mexican food, however, you do not know if it will thrive. Do not take chances; Investigate and hire consultants. Do a complete study and determine the viability of your business.
To think that an idea is good because it thrived in another part of the world, is a mistake. In the United States that business may turn out to be unproductive.
Adapt to change and the environment
When you change your country there is a culture shock, and it is normal to rely only on what you know, but maintaining our customs and traditions is not a synonym of disregarding the culture of the country where we want to evolve.
Nothing tells us more about a person than their culture, and if you know how you want to sell something to that person. Do not lose your essence, but enter and adapt to the new environment.
Do not leave anything to serendipity
It is important that you end with improvisation, it is necessary to have a plan A, a plan B, a plan C and all the letters of the alphabet if necessary. Make a perfect business plan, although we are clear not everything will come out as you expect, but if you plan carefully to overcome any adversity eventuality it will be easier.
Do not be afraid, maybe your idea will make you a Millionaire
The person who does not risk, simply does not win. This article might have frightened you a little, many rules, laws and advice, but it is worth a try. Regardless of the outcome of your business; Lose, win, fail or have more success than Bill Gates! having your own business is a unique learning experience that the best university in the world cannot teach you.
Remember that is worth risking in a country like the United States that has one of the largest per capita income in the world, imagine what you can do if you succeed!
Type of Visas you can choose as an immigrant investor
If you want to set up your own business in the United States, you must have all your documents in order. There are visas that you can choose from such as:
Visa B-1 Visa For Future Investors
This visa allows you to visit the United States to explore the market. It is valid for about 180 days in the country, enough time to gather information about: legal structure, costs, marketing plans and even advise about your project.
This visa will allow you to explore the market where you want to establish yourself.
L-1 Visa for entrepreneurs with formed companies
This is one of the easiest visas to obtain, if you have a business already established in your country and want to create an affiliate company here in the U.S. It is easy, because if you have the required documentation there wont be mayor complications on the process. However, if you do not have the documents, such as: your company’s balance sheets, bank account references, and some other documents referring to the company already formed in your country, it may not be possible.
Visa E-2 Visa to buy or create business
With this visa, you can buy a business already created in the United States or you can start one from scratch. It has a series of requirements and limitations, including:
- The amount to be invested can sometimes be more than $ 50,000
- It is required to generate profits in a percentage appropriate to the market.
- This visa can be obtained by people from: Argentina, Bolivia, Chile, Colombia, Costa Rica, Ecuador, Spain, Honduras, Mexico, Panama and Paraguay.
- You must explain where you got the money to invest, and its origin must be legal.
- It is a non-immigrant visa so you must renew it.
Visa O for people with extraordinary abilities wanting to form a company
This visa can be obtained by a person who has an extraordinary ability and wants to develop it by creating a company related to it. The person may possess skills in areas such as:
It is granted for a period of three years. In this time, you can pursue the completion of the business or complete its establishment. They are renewable.
H-1B visas to create a business by professionals
This visa is given to professionals. The person must demonstrate that he/she wishes to return to his country of residence. Usually given for three years and extended up to six.
Immigrant Visa EB
These are visas that can be converted into a green card in the future. It can be obtained in several ways, such as:
Have extraordinary skills, or be a valuable professional in your area. With this visa you can easily establish your business in the United States.
Another visa that will allow you to enter the united states: Money
Yes! if you invest half a million dollars anywhere in the United States, you can stay and have your own business.
The problem is how to find half a million dollars, which brings us to the last point: how to get capital to start a business in the United States as an immigrant.
How to get capital to build a business in the United States as an Immigrant
If you want to start your business in the United States, the first thing you have to do is to have the necessary capital, because if you want to enter the country as an investor you need a specific amount of money depending on your visa. Regardless of the type of immigration status, it is important that you get capital to invest, then we will talk about ways in which you can raise capital:
Some people packed a suitcase full of dreams, sold their home, their car and any valuable goods, raised enough capital to start from scratch and left their country. It really is the way many have started their business in the United States.
It is a very big risk, but it is a way to get immediate capital.
Others withdraw all their savings to start.
If you are going to take a risky option, your duty is to analyze all the factors such as market, objective client, legality, investment, etc to determine the viability of the business. Having a plan works and specially when you are risking all your money. So, if you start your business in the United States taking risks, you have to analyze all the elements and determine if it is feasible or not.
FFF, Friends, Family And Fools
This is the most accessible way to acquire capital for many, and is that simple, do not charge many interests (sometimes none) and there is flexibility of payment. What is FFF? It stands for Family, Friends and Fools; Ask for money to start your business in the United States from friends, family or someone you know trusts your idea.
Start a partnership
You have a good idea, a great talent and a lot of business skills. What you really need is capital to start. One way to do it ( sometimes not recommended ) is to partner with a investor partner, a person who can help you start and invest a capital. However, this will entitle that person to a percentage of the company.
It is really not an advisable way to get capital, it is preferable to go to family, friends and acquaintances who lend you the money and you can pay it whether it is with interests or not.
If you create a partnership, be clear on everything about the business and make a specific contract that benefits you.
It is not very simple to get, but Angel investors are a great resource when raising capital for your business. What is an Angel Investor? It is basically a stranger who wants to help you grow and can invest in your project, something like a mentor. The bad thing about this type of financing is that not everyone is lucky enough to have a person who wants to help them develop their business potential.
Similarly, the money must be returned, but the deadlines are flexible, and the person will help you not only monetarily, but with encouragement and advice.
This is a way of financing worth trying. It is simple and it consists of finding many small investors and give them something in return.
It basically works as a system of small donations. Receive a little, but from many people and if you are lucky enough, you can start your business with these types of donations. Many immigrants without legal status can access this type of donations, people who have had a business in the United States all their lives, but have not been able to legalize it.
The most difficult thing for an immigrant is to obtain help from a bank, to give him/her a real chance of being able to start properly. Because getting loans and financing becomes a bit difficult, options like Crowd-funding are a quick fix.
If you are creative yourself, you can start your crowd-funding campaign by social networks, or by a web page. Remember that there are many people who had a difficult start and are more than willing to help others who are in a similar situation to theirs when they immigrated.
This is a financing option difficult to find, as it depends on your credit record. However, it is not impossible. Before leaving your country you must ask for all possible bank references.
Any reference you can bring is fundamental, there are banks that can give you a loan if you document it or fill it correctly.
You have to keep in mind that the United States opens the door to whoever wants to invest in the country, and it makes it easier if you already have a company in your home country. If you already have your own business do not forget to take with you all those documents that guarantee the existence, its productivity and even credit record.
The better prepared you are, the easier it will be to obtain financing with the bank.
Believe it or not, the United States government provides immigrant help if you want to establish your business there. Certainly they are not aids for all, but worth knowing.
You can go to https://gobierno.usa.gov/recursos-para-negocios-organizaciones and take a look at some of the programs and see if you can apply for some.
This is the federal agency for small business development or SBA, here you can find advice, free courses, development centers and even small business loans. These loans can be used as seed capital to start your business in the United States, to buy land or expand it. Basically they can be used to grow that small business that you want to create.
You will also find the Federal Trade Commission or FTC, this organization has everything you need to know to start up your business in the United States. It also helps you with key information to start your internet business.
You can also learn visiting BusinessUSA.
You can also access financial resources through the SBA’s business development program, which supports minority investments in the United States, such as Hispanics and women. There is also the disadvantaged small business certification program, the mentor-protected program and much more.
If you are thinking about starting a business in the United States, the minority business development office can offer you valuable programs and services to grow your business.
No matter what the goal, if you already have your business or if you want to make it grow, the most important thing is that you educate yourself; That you find out what it really takes and create a good business proposal that offers many dividends.
If you have a good idea, do not question it and start your own business in the United States, the key is to be informed and to act as legally as possible. It pays to risk a dream in a country that offers thousands of opportunities for Hispanics.