Funding a Small Business Startup

Funding the startup of a small business means finding money. Finding the money takes both initiative and thought. There are many options when it comes to funding the startup for a small business idea.

Instructions

1. Save up as much money as you can. The investment for funding a small business startup takes more than just time and planning. Putting aside a specific amount each week will add up over time.

2. Sell off any investments you may own, or use them as collateral for a loan. Stocks, bonds or even collectables may provide you with some of the money you need in the initial stages of the business. Other real property, such as real estate, can secure loans with a good business plan in place.

3. Sell anything you don’t use. Have a garage sale or use an online auction. You have probably acquired many things over the years. Find everything you don’t use on at least a weekly basis or during holidays and sell it off. The money gained can help fund the startup of your small business.

4. Find a small second income. Working odd jobs or weekends could raise hundreds of dollars in a few months. Babysitting, dog walking and other side jobs may lead to another business you didn’t even consider.

5. Try family members. Even though most new small business startups try funding without family, it is a viable option. Consider giving the family members a small share of the business or consider borrowing the money as a loan with everything written down on paper.

6. Look for investors. If your business warrants larger amounts of capital to fund the small business startup, check into the possibility of seeking investment into your business. Finding a partner may also be an option. This idea will require you to surrender some ownership in the business.

7. Credit cards are the next option. While using this option, be sure you are aware of the interest rates and the repayment policies. Credit card use should be treated as a loan against the business that must be paid back. Missed or late payments can lead to a bad credit rating, which can affect both you and the funding for your small business startup.

8. Suppliers can also be a source of funding for a small business startup. Often, you can make arrangements with suppliers for payment every 30, 60, or 90 days on an account. This allows you to have use of the materials and merchandise while you gain a positive cash flow. Make sure these payments are on time so that you don’t lose this option.

9. If you need to rent a space, your landlord may also be a source of funding for a small business startup. One way of funding your small business startup is to negotiate a reduction in rent or the security deposit by offering to make improvements to the building or rental space in exchange for the money you would pay to the landlord.

Tips & Warnings

• Any use of credit will require repayment; be sure to read all documents and fine print before using credit.

• Get everything in writing when it concerns finances.

• Find an accountant who handles small business.