Best resources for small business startup money?
looking for grants or other types of money...want to avoid loans if at all possible. Thanks.
- imisidroLv 79 years agoFavorite Answer
Unless your business focuses on developing new technologies for the government, there's really no grants for starting a business. From the SBA website http://www.sba.gov/category/navigation-structure/s...
" The federal government does NOT provide grants for starting and expanding a business. Government grants are funded by your tax dollars and therefore require very stringent compliance and reporting measures to ensure the money is well spent. As you can imagine, grants are not given away indiscriminately.
- Your own personal savings. It is best to start a business when you've got the money yourself
- Borrow from family and friends: not always easy because of the personal relationships
- Credit cards - the most common way for small business owners. Can be costly depending on your interest rates, but the easiest to get
- Business loans: not easy for a startup to get and will require assets and collateral (doesn't matter if you've got an excellent business plan)
- Withdrawal from 401K: not advisable, but it is an option
- Angel investors and venture capitalists: unless you know someone who matters and recommends you to them, or you've got a patent, or the media starts talking about your business, or you join shows such as SharkTank, then it is extremely hard to get them interested in your startup.
- Crowd funding sites - there are sites where you can ask other people to fund your business. Individually, they may give small amounts but the benefit of the site is the numbers (if 100 gives you $1,000, then that adds up). See the source below for a list of crowdfunding sitesSource(s): Getting Financing for Your Business http://www.powerhomebiz.com/financing/financing.ht... List of Crowdfunding Sites http://www.powerhomebiz.com/blog/2011/01/list-of-c...
- HenryLv 79 years ago
Go to http://grants.gov/ and follow the instructions. You will find that unless you are a nonprofit, in basic research or daycare, there are no grants for a small business. Some cities offer grants to small businesses if they will locate in the downtown area or want to upgrade their store front, for the purposes of building up downtown traffic. Check with your City Hall for details. Private foundations offer grants. You can get a list of most US Foundations and private grant sources at http://www.foundations.org/