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How to Finance a Small Business


 
Financing your small business dream may seem like an insurmountable feet, but as of 2010, of new American businesses launched each year, 70% survive at least 2 years. Here are seven easy ways to finance your dream.

  1. Capital – Use your own money to finance a small business. The business will be worth more up front and will look more attractive to investors when it’s time to grow.

 

howtofinanceasmallbusiness1Capital for most new businesses forms from personal resources.

  1. Friends an Family – Financing a small business start up with private resources, friends and family, get the loans interest free or at a small rate to get on your feet.
  1. Second Job – Maintain a second job while launching your small business to infuse the enterprise with steady cash.

 

Be aware that it will also strain the focus, time and energy dedicated to the business which could ultimately threaten it’s survival.

  1. Credit Card – Use a credit card to fund a business venture between 28 to 42 days of interest free money allows some room to manage cash flow.
  1. Loans – Draw small loans from lenders, banks and credit unions will loan money to a small business on the basis of a sound business proposal. Research small business administration loans or energy efficiency, veteran, disaster assistance and other government loans and grants.

 

There are two types of loans: long term and short term.

  1. Angel Investor – Find an angel investor who will support the dream and stay out of the way to see it succeed. Set clear rules about payout and options to avoid hassles later.