How to Find the Money to Start Your Small Business

How to Find the Money to Start Your Small Business

Some businesses, like online writing or design, take very little upfront cash to launch. Others, like retail stores, require more money to get things rolling. Whether you need a few hundred dollars or a few thousand, you’ll need to consider a number of resources. The following are some you should consider.

Look at Your Savings

If you only need a little bit of money to build a website and print up some business cards, your own savings may be your best bet. I stress caution when looking at your savings because you should never use so much that you do not have enough to live on in the event of an emergency. In my case, I started my business while I was still working full-time, so taking a little bit to get things rolling wasn’t a big deal. Don’t use your savings if you won’t be able to replace the money or if you think you’re going to need to draw from it long-term.

Family and Friends

Again, I wouldn’t go to family and friends for a huge sum, but if you just need a little bit to get started, you may be surprised at how willing your friends and family members may be to help you out. Make sure you have a written plan of attack to show them, proving you’ve done your research. Show them where their money will go and how you intend on paying it back. Do you simply need a new piece of equipment so that you can call an already-interested list of customers? Will it take longer for you to start turning a profit? Make sure everything is in black and white so that your family investors feel comfortable.

Small Business Administration (SBA)

If you need money to purchase stock or hire staff, the Small Business Administration may be your best bet. The SBA has a number of loan and grant programs for businesses of all sizes. What you can get through them will be based on the size of your business, your location, your individual credit rating, and a number of other statistics. The most popular SBA program is the Microloan Program, through which you can get up to $25,000 for short-term start-ups or expansions.

Your Local Bank

Banking institutions often have great programs for small businesses and many are willing to support local growth – especially since it makes them look good within the community. Head on over to your bank and talk to a lender about the options they have available. You may find exactly what you need. Just keep in mind that if you are a new business owner with little credit history, they may ask you for a cosigner.

Private Lending Networks

Search online and you’ll find quite a number of private lending networks where you can apply for loans through 3rd party individuals. You may be able to fund your business if others are touched by your cause, but you may end up paying significant interest through these programs. Another option is to try to get loans for business from kabbage.com. This program offers short-term loans designed to help you with immediate needs for working capital that you feel you can quickly turn into profit.

Don’t let your lack of start-up cash get you down. Take some time to review all of your options and you’ll find what you need – whether it’s in the hundreds or thousands. Your business will be off the ground before you know it.

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