Q:

How do you get money to start a business?

A:

Quick Answer

To get money to start a business, look at sources that include your savings, banks, credit unions, and friends and family. You should have a polished business plan in place before you approach any parties.

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Full Answer

  1. Write a solid business plan

    Explain your products or services, your marketing approach, your predictions for sales and cash flow, and more in a business plan. Detail how your business stands to make money and the potential benefit for investors. Include a section on assets or collateral you plan to pledge to secure a loan and information on the background of the business, the organizational structure and the management team.

  2. Invest in yourself

    Save at least the equivalent of 12 months of mortgage expenses and other fixed expenses. Do not touch that portion of your savings, and use a different part of savings to fund some of your business. You may not see any profit for a few months at least, which is why it is important to have savings for an entire year. A home equity loan is a possible source of financing, particularly if interest rates are low and you have high equity in your home.

  3. Seek loans

    Investigate loan opportunities from the government, corporations, family members, friends and banks. Look into the possibility of obtaining start-up financing from credit unions, investors, venture capital firms and more. Bring your business plan, and tailor it as needed for each party you approach.

  4. Apply for grants

    Put in grant applications at the Small Business Administration, other government programs and corporate programs. You can also try crowd-funding sites.

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