How to Get Money to Start a Business

how can I get money to start my own business

How to Get Money to Start a Business

User-Submitted Article

Have you found yourself saying "how can I get money to start my own business?"

Do you have a brilliant idea? Having trouble getting the capital needed to put your idea into motion? Here are some simple and easy yet efficient tips on how to get money to start a business.

Difficulty: Moderate

Instructions

1. 1
   If you are sitting at your desk with a great idea but constantly thinking, "How can I get money to start a business", then maybe you need to scale down. If you don't have the capital, start slow. Get the business running part time and keep your full time job in order to fund the project.
   
2. 2
   Use your current job to line up possible customers and clients. This is not to suggest that you steal clients from your employer, but use the positive relationships that you have built and inquire about the needs of people that you may have worked with in the past.
   
3. 3
   Possibly the most basic, yet most painful ways to get money to start a business is to cut down your expenses. If you want to make money, or gather start up capital, decrease your every day spending. Even cutting out that daily trip to Starbucks can make a big difference.
   
4. 4
   If you are still thinking," how can I get money to start up a business", start investigating more complicated avenues. Take the time to apply for a home equity line of credit. Often times, banks will give you a loan of up to 80 percent of your home's value.
   
   If you own your home and have a minimal mortgage this can be a great option. You can get your hands on a big portion of money to get your business started.
   
5. 5
   If you don't own a home, or have a massive mortgage, you should apply for a business loan. These loans can be hard to get so you should prepare a detailed business and marketing plan. There is a good chance that you will get rejected, but do not be disappointed and stick to your guns.
   
   Your other option is look into a lending club. This is a group of investors that can help you get some working capital (see resources below).
   
6. 6
   Inquire within your bank about the possibility of an SBA-guaranteed loan. If you are unsuccessful in your application for a business loan, this can provide an alternate route. While your bank may not approve you, they can supply a local SBA office with all your information so you do not have to put together two separate proposals.
   
7. 7
   Another, but more difficult, route is to apply for grants. Typically grants are very specialized and can be difficult to obtain. If you get lucky you may have a business that falls into the right criteria for getting a grant.
   
8. 8
   The final option and least favorable option is to borrow money from your family or friends. I caution against doing this because the strain that it can put on your relationships with your family or friends may not be worth it in the long run.
   
9. 9
   Getting your hands on money and learning how to get money to start up your own business can be quite a time consuming and difficult task. However, there are a number of viable options available to you and the rewards can be plentiful. Stop thinking, "how can I get money to start a business" and put your ideas into action.
   
   While you are here please take a moment to check out the resources area below for companies that can help you with funding your business. And don't forget to check out my other how to articles by going to my profile.