How to Fund a Small Business- The Entrepreneur Start-Up Money Hunt

From the person who wants to start a landscaping service to the Harvard graduate that is going after their own commercial consulting firm. Young and mature entrepreneurs alike, often get creative in finding money to start their own small business.  

As the economy continues its historic crisis, many people look to get rich by starting their own business, two questions usually come up. How can I do it and how much business start-up capital do I need? A typical small business can get started on anything from no money down knocking on doors for work to less than $2,500. For example, try handing out printed business cards at local community trade shows or events. You may also want Internet access with email or cell phone services. Many Fortune 1,000 CEOs launched their businesses with $10,000 or less. And more than a third of those CEO bootstrappers started with less than $1,000.  

If presently, business start-up money is not an option for you. Do not fear as there are several steps you can follow to ensure that whatever business start-up money you do have, no matter how small, is able to stretch. Finding money may be as simple as asking mentors in your community for work. Many successful entrepreneurs find start-up money, grants and loans using all inclusive support centers.    

It is also important for you to cut back on expenses in your personal life. In the beginning you will have to make sacrifices. Write out your monthly personal budget and cut out non-essentials, such as going to the movies, eating out or buying the unnecessary new shoes.   

Did you know the average person that uses coupons saves 12% on their family food budget?  So if you are spending $600 a month on groceries and household items by using coupons, it saves you $78 per month. Cutting back on coffee drinks saves the average person $28 per month while cutting costs for spa salon visits and beauty products saves over $45 per month. That's a combined total savings over $150 per month to invest in your home-based business more than enough to get the word out by securing a web domain name and creating an online business presence with any of the website hosting services.  

During the first year of business, it may be appropriate to ask close family, friends, local organizations, and wealthy individual "angel" investors in your community such as lawyers, doctors, professors or established business owners to come onboard as partners in order to raise more money to invest in building your business.  

Financing your business on credit cards may save time and allow you to keep business expenses separate from personal ones. But without careful management, credit cards can quickly put your start-up on the sidelines. Half of all start-ups are financed with credit cards. But be careful: Sky-high interest rates could bury you for years. Plastic can jump-start any business, but use it wisely.  

Inevitably as your business begins to grow, in order to raise significant capital it is valuable to write a business plan. Your business plan must address a real market need clearly demonstrating a realistic path to profitability building real assets on the balance sheet. Keep it straight forward and less than 20 pages with factual graphics. Learn to take advantage of free community library resources including standard computer software courses such as Microsoft WORD and Excel both excellent tools for writing your business plan.  Include full historical and projected financials within the body of your business plan. If you lack the requisite skill sets or need third-party objectivity you may want to hire a professional business plan writer to do it for you.

Remember more than half of the world's self-made millionaires are entrepreneurs or self-employed professionals. Historically, small businesses have always been the engine of growth in the economy with entrepreneurs who saw a need, met it and made a fortune in the process. Stay organized, keep a focused positive attitude.