Lack of money doesn’t have to keep you from pressing forward with your dreams of becoming an entrepreneur. Finding enough capital to fund a business can be a challenge, but successful business owners across the country proves it can be done. Learn to raise money to start a business by following these steps.
Raise Money to Start a Business
Borrow from your personal savings. Using money that you already have stashed away is one of the best ways to finance a new business. Even if the business fails, and you lose your shirt, you won’t have the extra burden of figuring out how you're going to pay anyone back.
Use credit cards. You can apply for major credit cards, and use the line of credit to finance your business.
Borrow from friends and relatives. If you have a supportive network of friends and family, you can borrow some of the money you need to start your business from them. But keep in mind if your business doesn’t work, and you're unable to pay your loved ones back, you’ll have to deal with the possibility of the relationships turning sour.
Get a second job. You can use the money from your second job to fund the start-up cost for your business.
Apply for a business loan. If you’re going to convince a bank to loan you money for a business, you need to have a good credit rating, collateral and a business plan.
Start your business on a part-time basis, and keep your primary job until it starts to turn a profit. A New business takes time to grow. If you have the money for the initial start-up, but not enough to maintain the business once it gets going, don’t quit your day job. You may need to take some of the money from your job to cover the cost of maintaining your business.
Cut your living expenses and use the extra money you save for your business. Consider having your morning coffee at home instead of at the local coffee shop. Do without cable for a few months. Cut your energy bill by turning off unnecessary lights, and appliances. Pack your lunch every day, and ride a bike to work instead of driving.
Sell nonessential items around your home. It won’t kill you to do without a recreational motorcycle, an extra television set, or your favorite pair of diamond earrings. Your material possessions can be easily replaced once your business starts to prosper.