While some small businesses and online businesses can be launched with little or no startup capital, most new businesses need to obtain some form of business financing to make them a reality. Here are a few ways you may be able to find the money to make your small business idea a reality:
Personal Savings – If you have a large enough personal savings to finance your small business, at least consider the possibility. You can consider it an investment, or at least look at the interest you would save as opposed to other forms of small business financing. Then again, financing a small business from your personal savings means that you’re shouldering all of the financial risk.
Loans from Family and Friends – Many small businesses are launched through funding invested by family members and friends of the entrepreneur. Before deciding to go this route, make sure you can handle the personal burden of knowing that you owe money to your loved ones.
Bank Loans – These can be either business loans or personal loans that you plan to use for your startup costs. Before applying for a bank loan, make sure you’ve crafted a viable business plan with realistic financial projections to better your chances for approval.
Outside Investors – If you have a solid business plan, you may also be able to raise startup capital from angel investors or venture capital firms.
Government Loans and Grants – It never hurts to see if your government offers grants to entrepreneurs that you may be eligible.