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.
- 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.
- 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.
- 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.
- 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.