How to Fund a Tourism Business

Starting a tourism business can be intimidating from a financial standpoint. Even if you have some money saved up, the truth is that you may want some additional funds to help you cover expenses, or you will want to avoid using your own savings to gamble on a new business. Fortunately, there are many choices available to those looking for money to fund their tourism businesses.

Instructions

Difficulty: Moderately Challenging

1. Contact the local Chamber of Commerce and your state's department of tourism to see whether they offer funds or financial backing to new businesses. If you live in an area where tourism is still in its first stages of development, you may be able to get the government to help you fund your tourism business. This is especially true if you focus on local tourism and attracting people to the area.
2. Find a partner or a venture capitalist. If you have the know-how and the experience to set up a business but need somebody to back you up, finding a partner or an investor may be your best option.
3. Look into loans from banks and financial institutions. If you have a good credit history, this may be an attractive option. You will need an extensive business plan and probably a good work background to support you, but loans for small businesses are common and not that difficult to obtain.
4. Contact the Small Business Administration to learn whether or not you qualify for a special loan or fund (see Resources below). If you are a woman, disabled or part of a minority, you may benefit from special government programs designed to get small businesses off the ground.
5. Use the interactive tools provided at BPlans.com to help you predict your starting costs, cash flow, success potential, break-even point and other financial details (see Resources below). This is a great way for you to understand where you are standing when it comes to finances and how much money you need to fund your tourism business.

Tips & Warnings

• Before you even start looking for funding, make sure you know how much money you need in total. Besides the basic costs, you will also need to factor in unexpected expenses and extras for taking your business through the first few months.