Five Ways to Get Business Start-Up Funding
Getting start-up capital can be a challenging process as your business prepares to take its first small steps. No matter how great of a business idea you have in order to turn that idea into reality by launching your business you will need business financing.
How do you go about getting the money you need to start-up your business? There are a lot of ways to get the capital you need for your business and you only limited by limits of your own creativity. But here are five ways to help you get business funding to help you business get your business started:
1. A Personal Loan: If you have fairly good credit you can probably get a personal loan to get your business up and going. Many small businesses have been started with personal loans. But it might not be a good idea to tell them that you will use the loan to start a business because they might send you to their business loan department.
2. Family and Friends: You make be able to borrow the money you need for your business from your family and friends, or you can give them an equity stake in your business. And you should be business like in your dealings with them by providing a copy of your business plan and putting everything in writing.
3. Credit Cards: If you have or can obtain several credit cards you can get a cash advance on them then use the money to start your business. So if you have, for example, three credit cards with a line of credit of $10,000 each you could quickly raise $30,000 for your business to get it up and rolling fast. However, before you use credit cards be sure that you can earn enough profits to maintain the payments until you can pay them off.
4. SBA Micro Loans: A micro loan is a loan where the SBA provides loan money to intermediary nonprofit agencies such as Community Development Agencies and similar kinds of agencies which are in every community. These nonprofits then make these loans to deserving businesses in their respective communities. You can borrow $5,000 to $35,000 with the micron loan program, and it is well worth checking into to see if you can qualify which should not be too hard to do if you have a fairly decent credit rating.
5. Angel Investors: Angel investors are individuals with large amounts of excess capital that they love to invest in promising business ideas, which will make them even more money. An angel investment is an equity share in your business, so before you approach angel investors know how much you are willing to give up, and have a good business plan.
With a good business idea and a good business plan you can get the money you need to get your small business operations off to a good start. These five ways that we covered are just some of the many ways to finance your business start-up, of course, there are many more ways.
But the key point here is that whatever way you decide to fund the first few steps of your business it can be done successfully, and the only limits you have are the limits of your own creativity which is unlimited. Now use this article to help you get the capital you need to turn your great business idea into a profit making machine.