Fund Your Business
This is the second step in the How To Start a Business series.
Every small business needs capital. You need to know you have access to funds to ensure you can start and manage your business successfully. Very few businesses are profitable from the onset; you need to ensure you’re able to take the time to attract clients and repeat customers, and that means you'll need financing to keep things moving until you reach profitability.
Some small business owners have their own personal financing or investments from family and friends to get started. Others rely on traditional bank loans or are able to raise venture capital. Research which avenue is best for your business.
Common sources of capital include:
- Personal Savings
- Friends and Family
- Traditional Lending
- Commercial Lending
- SBA Guaranteed Lending
- Venture Capital
Your funding does not have to be limited to one source. Take the time to investigate a variety of sources. For example, you should explore SBA Funding Programs, our free OpenGrants database and Grants for Non-Profit Startups.
Establishing reliable, stable funding early is critical because there are always unforeseen circumstances that arise, and there should always be a business nest egg set aside to handle emergencies or other unanticipated challenges.
Once you've determined how you will fund your business, you should add that information into your business plan and proceed to Step 3: Hiring Professional Advisors.