How To Get Money To Start A Business Tips
Chris asks…
How do i raise enough money to start a business?
I really want to get started on opening a shop but i have no idea where to start with raising the funds. any suggestions?
admin answers:
You need a good business plan to get the bank or someone to finance your shop and business. However this is easier said than done.
You might consider making someone a financing partner. He invests the money, you do the work and you two can split the profit.
Arun
Robert asks…
What are some unorthodox methods for borrowing money to start a business?
Don’t waste your time or mine by answering with “borrow from family” or “go to your bank”, etc.
I have a few ideas for businesses that I would like to start, but it seems like every avenue I explore to borrow money turns out to be a dead end. Forget about borrowing from banks and family. What are some less than common borrowing methods I can consider? I checked with the SBA, they no longer lend money, and the only grants they can assist you in getting seem to be for environmental causes. I checked into numerous venture capital companies, but they all seem to be interested only in information technology ventures. I’ve considered forming a private corporation and selling stock in it to private investors, but I don’t know if I’d be able to find enough investors. Also, I’m afraid I’d the investors would be breathing down my neck all the time and trying to tell me how to run the corporation. Anyone have any worthwhile thoughts on all of this?
I am not interested in prosper.com. Please refrain from answering with referral links to this or anything else. Anything that you’ll profit from if I sign up, I’m not interested, so don’t waste your time or mine. Thank you.
No more answers like the one from the ignorant dolt who posted the 3rd answer below. “I know someone who was helped by this lender, or I was helped by so and so, or I’ll lend you the money – I’m an accredited lender”. You people know who you are. Rather, I should say, you SCAMMERS and CON ARTISTS know who you are, and I see right through you, so don’t waste your time, or what is infinitely more important, MINE.
admin answers:
You have covered all the normal methods except maybe a HELOC or selling things to raise capital.
Depending on the type of business you may be able to have your customers finance the business. Say you wanted to start a janitorial firm and you had been cleaning buildings for another firm so had the experience but no equipment. You could find customers and get them to buy the equipment and lease it to you deducting the payments from your fees.
Another method is to buy out the company you work for on a contract paying payments out of current proceeds. This is pretty common in CPA firms since the buyer must be a CPA and a one working there has a relationship with clients.
Sharon asks…
Real money to start a business please?? They say its out there, but where do I really start?
Me and my husband is starting a business and we need money! But we don’t want to borrow yet. How do we go about getting grant money and how do we know its a real website. It’s getting overwhelming! Also how long does it normally take to receive grant money? Is finding a Angel Investor a smart move or no?
admin answers:
Start with – there are no federal grants to start small businesses except for very limited money to start very targeted businesses (alternative energy, for example, for which you would need a viable idea/product).
While some states did, at one time, have seed money for small businesses, the current economic crisis has reduced the amount most states have available. Check with your local economic development agency to see if they know if you state has small business grant money available.
Remember that with an angel investor, you will most likely have to give up part ownership of your business. Angel investors tend to look for new products/services that are not competing with established companies (i.e., you would probably not find an angel investor if you planned on opening a sub shop).
In all reality, your best bet is to put together a business plan and look for an SBA-guaranteed small business loan.
William asks…
How do I start a sustainable business with no money or loans?
My husband and I want to start an organic nursery business but neither of us have money and I still have a lot of college loans to pay off. Where can we get money to start and what is our next step?
admin answers:
To get started, I suggest contacting the Small Business Administration Financing Page (SBA) – links below. Entrepreneur also offers a great site dedicated to money & finance – see below.
Associations may be a good avenue to explore. These organizations will address many of the thoughts, questions and concerns you’ll inevitably have as well as many you haven’t anticipated yet. See the source box for some relevant links.
Research, research, research – this cannot be stressed enough. Read as much as you can. Here are some book titles that are relevant:
Finance Related:
* Free Money for Small Businesses and Entrepreneurs by Laurie Blum
* Finding Money: The Small Business Guide to Financing (Small Business Series) by Kate Lister, Tom Harnish
* Financing Your Business Dreams With Other People’s Money: How and Where to Find Money for Start-Up and Growing Businesses by Harold R. Lacy
* No Cash No Fear: Entrepreneurial Secrets to Starting Any Business with No Money by Terry Allen
* Starting on a Shoestring: Building a Business Without a Bankroll by Arnold S. Goldstein
Nursery Related:
* The Complete Guide to Garden Center Management by John Stanley
* Establishing and Operating a Garden Center: Requirements and Costs (Nraes (Series), 161.) by Agriculture, and Engineering Service Cooperative Extension Natural Resource
* So You Want to Start a Nursery by Tony Avent
There are plenty of free informational resources out there. Check the source box for links to articles.
Hope that helps! I wish you much success & happiness in all your ventures!
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