Startup Business Funding – Where to Look
March 4, 2009 by Stephen Kersey
Filed under Business
You have spotted an scarcely inhabited business niche. Your business model appears to be a surefire hit. You have gone through your business plan with a fine-toothed comb. However, you still have a problem — where are you going to find startup business funding?
That problem has kept umpteen potentially successful businesses on the ground. Arguably, nothing is as difficult in the startup world as getting the needed funding. Where should you look for the funding for your startup business?
1. Your personal bank account. While it’s never a good idea to spend your last dollar on a startup business, a vast majority of startups rely on personal money to get the ball rolling. Don’t think that you necessarily must find funding from an outside source.
2. Business loans. If you have good credit and a solid business plan, now isn’t a bad time to try to get a business loan. Banks are struggling and to make money, they need to lend. Although they are being more careful about who they lend money to, the loans are definitely out there.
3. Friends and family. With the stock market seemingly falling on a daily basis, you may be surprised at how many people would be interesting in investing elsewhere. Offer your friends and family an investment proposition and you may find that startup funding.
4. Venture capitalists. Though they won’t come knocking on your door, venture capitalists definitely exist. If you truly believe that your business plan can lead to success (and can prove it on paper), a venture capitalist could be the way to acquire your funding.
5. Government grants. Yes, we’ve all seen those commercial. However, beware that there are many scams associated with government grants (if you have to pay to apply or get information, look elsewhere). But with some research, you should be able to find legitimate government grants available in your area.
Startup Business Funding - Source: Flickr
Thanks for all the tips Stephen, these are great for anyone looking for funding. There are also ways to save money and decrease your start up costs, too! One way is to join a program like GoEverywhere so that you have access to their common software titles and utilities, as well as their free applications and services on the internet. You don’t have to upgrade your operating system or migrate to Vista, so purchasing an expensive desktop or laptop isn’t a necessity. Another great feature is the ability to access your files from anywhere – so if you need to go visit a client, you don’t need to have a laptop to enter data or display files.