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

Post from: EveryJoe

Startup Business Funding – Where to Look

But there are a few things that will definitely be in the future:

1) It’s going to be harder than ever to raise capital for businesses. Loans will be few and far between. Most VCs are losing money too, so they will be conservative in their giving. Plus, I am quite sure the terms of loans and VC agreements will be tougher.

2) Potential customers will take longer to pull the trigger. People are going to be careful in their spending, since every penny is going ot count.

3) Customers are going to expect more… more services, more payment options, more bonuses to keep them happy.

What do you think? How is the financial market upheavals going to effect you?

Post from: EveryJoe

Tough times for entrepreneurs and startups?