Thinking Money | Free Financial Advice and Tips

How Can I Get Money To Start My Own Business?

Posted on 27. Nov, 2009 in General News

When you are ready to start your own business, you will probably need to get some business financing. Business start up costs can be rather hefty – depending on what kind of business you want to start. Costs may be even higher if you start a franchise business. Here are some places you can go to find the business finances you need to get your new business off the ground.

Get a Good Business Plan

Obtaining a well-written and through business plan is a must if you are to be successful in getting the business funding you want. All lenders will require it – and others will want to see it as well. An easy way to do it is to hire someone with experience to write it for you. Make sure that it is realistic and avoid inflating any numbers – lenders will recognize numbers and projections that are too good to be true.

Apply for Government Grants

The Government of England is willing to help new businesses get off the ground. You certainly do to want to miss this opportunity to get this type of business financing because grant money is free. You should apply early in the process of finding business start up money because it will mean having to borrow less.

In addition, you may also be eligible for business grants from the European Union. They also provide grant money for some new businesses, as well.

Talk to Family, Friends and Relatives

The next step in getting money is to go to your family and relatives and see if they are willing to help you. Even if you do not go further than your relatives, it is still important to have a business plan. By showing them you are looking at this from a professional business perspective – they may be willing to lend or give you even more money.

Approach Bank Lenders

After you get all the free business financing you can get, then it is time to go after other sources – the banks or credit unions. It will take some time to get money from a lender, so be sure to allow plenty of time and be willing to talk to several. Compare the value of loans you are offered in order to find the best terms and interest rates.

Find Angel Investors

Angel investors are individuals or groups who are willing to lend you venture capital to start your own business. They will look for a good percentage of profit over a period of time. The better your business plan looks, in terms of details and realistic overviews, the more they will like it. In addition, many angel investors are experienced business men and women who may be able to provide quality guidance, too.

Credit Cards

The other option is to take out a business credit card. Many different credit card companies will offer several different credit cards ranging from those targeted towards small business credit cards to those that reward users with airmiles or cash back.

There are also other sources of money for you to tap into for your business start-up. Various business associations are always looking for new businesses to invest in, which means you will want to consider local business groups. You can get the business financing you need, but be sure to be professional in everything as you approach people about your new business offering. They will want to hear about it, and don’t forget to take advantage of networking, too.

Tags: angel investors, business financing, business grants, business start up costs, start your own business, venture capital