You have a great idea for a business but don’t have enough cash to get it off the ground? Funding is often the main component that keeps an entrepreneur from his or her dream. Have you been searching for government grants in the hopes of finding free money for your start up? Are you looking for investors and angels? Are you discovering there are no Venture Capitalists handing out start up funds?
The reality is that when it comes to funding your own small business, you need to be able to provide at least some of the financing yourself. Even if you qualify for an SBA (Small Business Administration) backed loan, you must still pitch in a good percentage yourself (20% – 30%).
And when it comes to grants, there really are no grants available for small start-ups. Sure, there are some here and there for $500 – $1000 for niche groups. But even a small business will have start up expenses upwards of $10,000. And Venture Capitalists are looking for multimillion dollar deals that will net them millions in return. They have no interest in helping the little guy with his little business.
So, where do you find funding?
Before I answer that all important question let me ask youDo you have a detailed business plan with exact dollar requirements spelled out (or very close educated assumptions)? That is your first order of business. Once you have a very good idea of your needs you will have a better idea of where to look for funding.
Most people don’t even know how to begin to figure their start up costs. Here is a list of typical start up expenses: