How to Fund a Start-Up Business

Safe Piggy Bank

There are many different places to find business start up funding, each with it’s pros and cons. Business funding can come from your own personal savings, from family and friends, using your credit cards, SBA loans, as well as a credit line using your home’s equity. There are also other government funded programs that can also help you.

Using your savings to for your business start up is one good idea. One reason this is a good idea is that it is money that doesn’t have to be borrowed from someone else. If something happens, and you lose your business, you aren’t in debt to anyone. It is definitely a really good place to start, but in many cases, it is not enough to really get things going.

Asking your family or friends to help you with your business start up is another good idea, because they understand you and know you better than banks or other institutions that are more concerned with whether it is a good investment, rather than your character. Friends and family can be much more sympathetic if problems arise, and can be flexible about repaying them.

Using your credit cards to help you with business funding may seem like a good idea at the time, but be careful. Business start up funding can be costly, with equipment to purchase, advertisements and other things, and it can be easy to go over your limits, incurring heavy penalties. If something happens, you still have to pay off the cards, and you can get into debt.

Using your home’s equity is another good idea to help with your business start up plans, because this is somewhat like your personal savings. This too you have to be careful with so you don’t overspend. Like the other business funding ideas, you have more flexibility, and don’t have to have a detailed business plan, like you will with other sources of capitol.

When using SBA loans, bank loans and other avenues, you have to provide a clear and detailed business plan. You have to show where the money is going, what it is going to pay for, and you also have to provide details of your income from your business, and often have to foresee this income up to two years. If you don’t have everything well put together, chances are you won’t get the money you need.

A good business start up plan can help you not only get the business funding you need, but it also helps you to know which areas you need the capitol most. A good business plan takes time and research, looking up what the exact costs for each aspect of your business. You will need it for not only loans, but any other alternative funding ideas.

There are other ways to get the business start up capitol, but this may not be in the form of actual cash payments. Vocational Rehab is a good place to get goods and equipment to help with your business, as well as other resources for your local job service. Job service may be able to help you update existing equipment, and pay for things like displays, tables, and may even help you rent a building, depending on your needs.

 

Leave a Reply

Your email address will not be published.

Get help with Quickbooks



Is your company thinking about using Quickbooks?


Do you use Quickbooks but need help getting more out of it?



Let Springer & Co. help you with your Quickbooks needs.  Whether it’s getting it setup, getting training, or tuning it up, we can help.  Click the button below to get started.

 



×
Let Springer & Co handle all of your tax needs

 



Whether it’s preparing, filing, or tracking your tax return, Springer & Co. is here for you. We are here to answer your questions, help you understand your taxes, and walk with you through the filing process.


To learn more about what Spring & Co. can do for you click the button below.



×
Need help with your books?

 



As a small business owner you have more important things to do than to keep your own books. We take care of your books for you, so you can get back to the job of running your business and generating profits!


To learn more about what Spring & Co. can do for you click the button below.


×
Are you having problems with the IRS?

 



We’re here to help you resolve your tax problems and put an end to the misery that the IRS can put you through.


Click the button below to find out more.



×
We want to help your business succeed

 



We are committed to your success. We can help you to navigate the mine fields in the business world and avoid the School of Hard Knocks in starting and running a successful business.


To learn more about what Spring & Co. can do for you click the button below.



×
Business Strategies




Thinking about starting a business?


Do you have a business but wish it would run more smoothly?


To learn how to start, run, and eventually sell a successful business click the button below.

 


×
Have you ProfitShipped your business, yet?




We can help you navigate the rough waters of taxes, accounting, and budgeting, so you can save money, keep more of what you make, and work smarter, not harder.


To learn more click the button below.

 


×