Get Money to Start Business: Resources & Get Startup Funding

Tips to help you fund your business.

‘Tis Better to give than to receive – unless you are just starting your own business, or trying to get a new product to market and looking for funds- then you need to receive. You may need to remind friends and family of this little saying.

While people are in the “giving” spirit of the season it might be a good time to ask friends and family for start-up funds. This is the time when people are planning for a new year and possibly looking for investment opportunities. However, you should be sensitive to the fact that many people have been adversely affected by the volatility of the stock markets this past year and may be leery of investing in anything new until things settle down a bit.

Start by asking those people closest to you for either an investment or loan. Have an amount in mind and also have a concrete plan for how you will spend the money you get and be prepared to show it to them. Most important, they will want to know how and when they will be repaid so have a realistic schedule prepared.

If you need to widen your ring of friends and relatives, then ask your closest relatives for names of anyone they know who might be willing and able to help you. Friends of friends and relatives of friends are good candidates.

So what if you can’t get anyone to loan you the money you need? Find your local S.C.O.R.E office. That is a not-for-profit organization of retired executives who can help you find either Small Business Funds from the U.S. Government or funds from other sources.

In addition to funding, they offer a variety of services to help people starting out. You might have to fill out some forms to get started and if you live in a rural area you might have to wait a while for someone to get back to you but they are very helpful.

If that option doesn’t work for you, try using the Internet to look up venture capital groups – preferably in your state. Then contact firms from the group specializing in the area you are interested in. If you have an electronic product, for instance, find firms interested in funding electronic products. In Connecticut there is a venture capital group very interested in funding new projects to stimulate the economy of our state. This is true of other states as well.

Use the resources of the Internet and those at your local public library. In fact, at most libraries now you can do both at the same time as most offer Internet access. The reference librarians can be very helpful in steering you toward the information you need. If you are not familiar with the Internet they can help with that too.

If all these options don’t work out and you are still determined to forge ahead, perhaps you can refinance the mortgage on your house or borrow seed money from a bank or other financial institution although I would thoroughly exhaust all other avenues before doing either of those.

Keep trying!

Article – Copyright 2000 Stanley I. Mason. Syndicated by ParadigmTSA

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