The Small Business Startup Bake Sale

…and other not-so-crazy fund-raising ideas for business startup.  The Wall Street Journal reports that more traditional funding for small business start-up has become leaner, so small business owners are resorting to more creative ideas for raising startup capital.

One business owner even sold cupcakes to fund her business idea.  You may not be a baker but you can certainly find creative ways to finance your small business start-up.  For example:

• Make something to sell. Consider what you might make and sell locally to get money.  For example, you could sell baked good or crafts at local flea markets or farmer’s markets this summer.

• Sell an e-book. Everyone on the Internet loves e-books.  If you have an idea and you can put together a web site, PayPal account, and e-book, you can make money.  Talk about something you know for about 100 pages, put the book into PDF form, and away you go.

• Work for someone else. Many small business owners work part-time to get money.  If you have another primary source of income, a part-time job can be banked, giving you enough cash to get started.

• Start “skinny.” Start with almost nothing and only buy when you can afford it.  This start-up method depends heavily on credit cards, so it’s riskier.

• Get one good customer. If you work really hard to find one customer, you may be able to make enough money from that work to get money for a down payment or start-up.

• Borrow from family and friends. A lender doesn’t care where your collateral comes from; the bank just wants you to have some cash.  Loans from family or friends don’t get recorded, so they don’t affect your credit rating.  Just be sure to pay them off quickly; no sense losing the relationship.

• Work with someone else or combine forces. My husband started a rental business several years ago, and he rented some of his space to a someone who wanted to start a video store.  Each business gained from the advertising and customers of the other one.

Small business owners are resourceful and ultimately hopeful.  If you are passionate about starting your business, you will figure out a way to get the money.  Winning the lottery doesn’t count.

Image: barbwire55@flickr