subject: How To Raise Small Business Start-up Capital [print this page] As a new entrepreneur, one of the things you have to consider when starting a business is your start-up capital. Is it enough? If not, here are ways on how and where to get additional financing to set up your own business.
1. Personal Savings. If you dream of running your own business, then start setting aside personal savings. It's important to understand that any kind of business involves risks. Hence, aside from the start up capital, it's best to have personal funds that can support you and your family in case the business does not go as well as expected.
2. Sell Assets. Another way to save business funds is to do some selling. Let us say you have an old car or other valuable assets that is worth a considerable amount of money, selling it is another wise move.
3. Get a second job. To save up more quickly, you may try to apply for a second job for extra income. The salary you get from your second job can help you build up your business capital faster.
4. Apply for a personal Loan. Another way to raise a start up capital is to apply for a personal loan. There are various lending companies or institutions offering personal loans which the applicant can use for different reasons such as starting his/her own business. Apart from commercial lenders, you can also inquire from credit unions or microfinance institutions for possible unsecured personal loan programs that you can get.
5. Apply For A Bank Loan. You can also apply for a small business loan from your local bank but you need to make sure that you are prepared to avoid unnecessary delays or rejection. Generally, most banks have more strict rules and standards especially when it comes to reviewing new business loan applications.
6. Check out Government Programs. Don't forget to check the U.S. Small Business Administration (SBA) for possible loan programs that matches your business. Small business loan applicants can seek SBA's assistance if they are experiencing difficulties in having their applications approved. The SBA can help by guaranteeing the loan.
7. Seek help from angels. Angel investors can be individuals or a private group who would be interested in investing in your small business. Once you have found a prospective angel investor, it's important to present an impressive business plan to show that your business has a very strong potential to survive the market.
8. Apply for a business credit card. Applying for a credit card that is really designed for business can provide the much-needed support especially if you are working on a limited budget. You can start charging expenses or purchases to your business credit card as soon as your application is approved and pay for them at a later time. That should give you the chance to produce and sell your products as you try to stretch your cash flow. Business credit cards are also great tools for building credit history for your small business which will make it easier for you to get approved for larger financing from banks and lending companies.
