How To Get Money To Start A Business

Thursday, May 7, 2009

Where can I get money to open a Business?

20 Ways to Get the Money!

This Intel is meant to serve as an idea jogger for ways to get money to start your business. You will likely come up with additional ideas while reviewing this - so it’s best to keep a notepad nearby. Hopefully this exercise will help to resolve the pressing question “Where can I get money to open a Business?”

Ok now relax, open your mind and let’s begin…

1. Small Business Administration (SBA)
This is a government agency specifically set-up to support the start-up and advancement of the small business segment. They can possible help connect you with the funding you need. Visit SBA.gov for more info.

2. Banks or Credit Unions
If you have a good relationship with a bank, then you might want to talk with a loan specialist there to see if they can assist. Make sure you have a good business plan together which clearly shows a realistic way that you plan to repay the loan within a set time-frame; this is always helpful.

3. Fundraiser Raise the money!
There are many people who have launched fundraiser in order to gain the money they needed to launch their business. The ideas for this are endless. If you can somehow team of with your favorite charity or community organization, and have a portion of the proceeds support them, then this could even supercharge your fundraiser a bit more. Make it news worthy and contact the press about the event –- this could take your fundraiser over the top!

4. Free Business Profit Reinvestment
Another way to raise money is to initially start a business or money making endeavor that requires very little to no money. A few ideas are personal errand service where you just run errands for people for a flat fee e.g. grocery store, pick up stuff from cleaners, pay bills, transport etc. Also you might want to consider becoming a writer here in at Qassia community. Many of us are earning decent ongoing royalties for our fun informative work here – the best part is that you can join absolutely Free!

5. Credit Card Advance
If you have a credit card, and any money left on it LOL… then you might want to use that as start-up cash. Many of the greatest entrepreneurs of our time started their business with their credit cards and sheer desire. One advantages of this is that you can at least buy yourself a little time, until you can hopefully turn a profit. This can be risky but sometimes you gotta do whatcha gotta do.

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6. Comic Books and Collectibles
If you have an old stash of comic books, then you might be surprised to know that some of them can be worth some money:) Old comics are no joke. Many people have cashed theirs in for Hundreds even Thousands of dollars! Also other collectibles that you might want to consider trading in for cash are sports/trading cards, old coins, etc.

7. Home Equity Loan
If you’re a home owner, you might be sitting in the money you need right now. A home equity loan is money taken out against the equity that you’ve built-up in your home. Usually these type of loans are quite reasonable and have extended terms for repayment. Another plus is that the interest is typically tax deductible.

8. Old Gold
Gold is a resource that is really starting to rise in value during these times. Trading in gold jewelry that you no longer wear or want can be a means to Money. Also if you have gold coins this can turn into even more money.

9. Scrap Metals
Scrap metals like copper hold great value by the pound. If you can team up with a company in your area to clean up scrap metals for free, then you may be in business and able to cash in those metals at a local stop and earn some nice cash from it. This could actually turn into a lucrative long-term business for you as well ...hey you never know!

10. Sponsors
You can also get companies or individuals to sponsor your business endeavor. You can offer major advertising opportunities to companies in exchange for funding. And with individuals you can offer the same - or they just may want to help if they like what you're aiming to do. Just imagine, even on a small scale, if you scan get 20 people to give you 50 bucks each that’s a cool grand! The best thing about the nature of sponsorships is that they don’t have to be repaid monetarily.

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11. A Job or a Second One
If you’re not working, then you might want to consider getting a job - even if it’s only part-time. That may be easier said than done in these days & times, but it may be worth a try. This could provide you a way to build up a stable income to invest in to your business. And if you’re already working, I know you don’t want to hear what I’m about to say but I’ll say it anyway -- consider a second job or overtime. Yeah I know the thought of it sucks but just keep thinking about that business you want to start; this should help you muscle it out for a while. Don’t forget to check temporary agencies and day labor as well, this is a good way to hustle up some money without making a long-term employment commitment.

12. Investors
Securing an investor or a few can be a viable option. Have your business plan laid out to the tee and be able to discuss your business execution intelligently. Investors are primarily listening to station WIFM (What’s In It For Me!) so be able to answer their questions and paint that picture for them. You can set-up and investment arrangement several ways from full investor, private investor, silent investor, etc. Do some library and internet research to get the ins & outs on this detailed subject.

13. Private Lenders
Private Lenders are independent companies and individuals who lend out money on a case by case basis. With these type of lenders, oftentimes it is easier to secure the funds that you need to launch your business. They look at your overall financial state and the prospectus of your business plan -- and take a lot of small details into consideration that large corporate banks don’t. Another thing is that your credit is really of little to no concern with private lenders, since that consider many more alternative factors about your financial profile.

14. Goodwill or Salvation Army
Did you know that some community-help organizations like the Salvation Army and Goodwill offer low-interest micro loan for business start-up? Yes they certainly do! Oftentimes they even have free or low-cost programs to train you in different areas like business planning and marketing assistance.

15. Revenue Pool/ Co-op Funding
Also you could team up with other business owners and start or join a business co-op. In this situation all expenses are shared i.e. rent, utilities, marketing & adverting expenses and so on... This arrangement relieves a lot of the financial burden off your business, enabling it to grow and thrive. You can always expand later on and go fully independent if you choose to. Then again you might enjoy the support of co-op business alliance, and decide that it's the best way for you to continue on with your business.

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16. Prelaunch Orders
Another way that many have launched their enterprises is by cleverly getting their market to pay for it! This is called Prelaunch orders. Just say you have a product that you can get your customers to pay for in advance - and they can expect to actually receive the product within 4 to 8 weeks or something like that. This cashflow can be just what you need to put the finishing touches on you product, and ship it out just in a nick of time! It takes great timing and hustle to pull this one off. But some entrepreneurs have done it and can sit back and laugh to tell the story:)

17. Stock Shares
Also you could consider selling off a percentage of the ownership of you business in the form of stock shares -- this is where each buyer of a piece of stock in your business will own an actual part of your business. You are in essence relinquishing ownership to a certain extent in order to raise the money. If this concept doesn’t bother you then it may be a workable option for you to consider and research further.

18. Government Grants
And in case you didn't know, the government supports business start-up too! They understand that this what keeps the wheels of economy turning. Usually if your business falls in line with their agenda - which is typically some type of strong community service, then they will usually grant you the money that you need. You can search about government grants online or inquire about it at your local government offices like the SBA mentioned previously.

19. Family & friends
Yes good ole family & friends can be another way for you to get the funds you need. The main thing is to deal with them with the utmost professionalism as you would an ordinary lender. Many people who borrow from their personal circle make the mistake of taking loans loosely. They don’t pay it back as promised - or not at all even when they have the money to do so. Don’t take advantage of your family & friends this way. Be a true business person about the situation and honor your loan (if it was in fact a loan, not a gift). Get everything in writing even if it feels awkward, and let your friend/family member know that you are just doing this because you want to conduct business properly -- and this will work to avoid any misunderstandings down the line. Avoid the hand-shake deals. Just keep everything on a Professional level to avoid any misunderstanding!

20. Tax Refund
And another thing, many people have gotten their business off the ground using their tax refund. If you've already spent yours hold on there still may be more!... The government reports that their are Billion$ in unclaimed money (it's just sitting in the government bank vault collecting interest!). And a large part of that is from people neglecting to file their taxes - or not filing properly for maximum returns. If you haven't been maximizing your deductions - or neglecting to file your taxes at all over the years -- Then oh have I got news for you: You could be sitting on a small (or Large) fortune and not even know it! And don't expect ole Uncle Sam to come chasing you down to give you the money they owe you, because they won't. It is your responsibility to track these funds down and Claim It. If you want the best chance at tapping into this money pool, I'd suggest you talk to a tax professional who is meticulous about uncovering overlooked deductions -- and who is knowledgeable about filing back taxes. (Note: This may not be your regular accountant or tax "professional")