Money For Business Start Up

There was a time, they say, when the money for business start up was on every corner.  Certainly in every barber shop.  Let's be honest.  It wasn't true then, and it certainly isn't true now. 

There is start up financing available, even for a first time business loan, but that business financing may not be where you suspect.

From Little Streams ...

... come mighty rivers.  There is a lesson for all of us in the 21st century.  Looking for business financing isn't looking in one place, creating one business plan, giving one presentation.  Rather, the skill of the 21st century entrepreneur is in capturing financing from a number of smaller sources and combining them all to create the foundation for the business.  This is especially true for business startup financing.

Let's take a look at that business financing strategy.

Bootstrapping

Before anyone else will provide small business financing, they need to feel comfortable that you believe in the project as well, that you are truly giving it your all.  Bootstrapping does NOT mean maxing out your credit cards.  That, in fact, in very bad strategy.

Rather bootstrapping means contributing the time and resources that are reasonably needed to get the project off the ground.  It means taking your project as far as you can by yourself, at least to the point where you can demonstrate where profit will be generated.

Money For Business Start Up From Landlords And Suppliers

Any time you can get a landlord to reduce rent, or get a supplier to extend a line of credit, it will help your bottom line.  Learn to negotiate.  Be ready with your business plan to demonstrate how professional, and how well prepared you are.  Small business financing is built on the ability of entrepreneurs to create networks, and small business funding sources, around them.

Money For Business Start Up From Economizing

There used to be a stigma attached to businesses run from home or from co-op offices.  No more.  Entrepreneurs who know how to economize have gained new respect.  So start small.  Demonstrate your ability to plan your business in stages.  This alone will go a long way in your search for business startup financing.

Look To Alternative Financing For Money For Business Startups

Your business startup financing may come from sources you have never seriously considered, all manner of small business loans and grants, and funding sources such as:

A line of credit is often easier to get than long term financing.  See if it will help in your circumstances, alleviating the need for a larger long term loan.  This often works well when your business is cyclical.

Credit unions are a very overlooked source of money for business start up.  Qualifications and terms are often more flexible with credit unions.  Make an appointment with a couple of local credit unions.  The worst they can do is say No, and you've already heard that.

Accounts receivable financing isn't cheap, especially for startups.  But it might provide the cash you need.

Equipment leasing can free up a lot of capital in the beginning, which is when most businesses have the most trouble.  Again, startups will pay more for this type of small business financing than established companies, but it may be worth considering.

The Bottom Line For Money For Business Start Up ...

... is that it is unlikely that you can walk into a bank, or an angel investment group, or most any other entity, and get all the financing you need.  Use your financing skill to knit a network of lending sources appropriate for your business.

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