| Finding business start up funding can be one of the | | | | That said, the business you're thinking about might |
| biggest challenges for a would-be entrepreneur. While | | | | require an up-front investment. If that is the case, here |
| launching a new business venture calls for a great deal | | | | are just a few sources you might consider: |
| of research, skill, and preparation, many people have a | | | | Your savings or investments- For starters, you might |
| difficult time coming up with the financial resources to | | | | look to your savings account or liquidate some of your |
| get their new business off the ground. As a first step, | | | | investments. |
| you should list the various potential sources of funding | | | | Borrow from friends or relatives- While this is an |
| available to you and determine which approach will be | | | | avenue many new entrepreneurs take, it should be |
| best, given your own unique needs and time frames. | | | | approached with caution as it can lead to discomfort |
| How Much Does it Cost to Start a New Business? | | | | and hard feelings. |
| The answer to this question depends largely on the | | | | Credit cards- This is another method that should be |
| type of business you are looking to start and the | | | | undertaken very cautiously and only if you believe you |
| choices you make along the way. Some of the most | | | | can pay off the balance very quickly as credit card |
| critical pieces to answering this question include: | | | | debt typically carries a very high rate of interest. |
| - Do you have to invest in capital equipment? | | | | Loan from the bank- A bank loan is often difficult for a |
| - Will you be renting or leasing a location for the | | | | new business to acquire. To be successful, you will |
| business and, if so, will that space require any | | | | probably need to show a professional and |
| renovations? | | | | well-developed business plan along with a plan for |
| - Will you need to hire and pay employees? | | | | repaying the loan. |
| - Will you need to purchase and maintain inventory? | | | | Before choosing any of the above methods you |
| Fortunately, many businesses (e.g. those that are | | | | should be sure to have developed a business plan that |
| Internet-based) can be started with minimal budget and | | | | you believe in and, to the best of your ability, a |
| run from home with no employees, inventory or any | | | | projected time frame for recapturing any money you |
| equipment other than a computer. | | | | may have borrowed to get your business started. |
| Sources for Business Start Up Funding | | | | |