How can i get money to start my own business

How can i get money to start my own business

There are several sources available that can provide funds for your business.

You need to make a choice after careful analysis of each source. Then you will know the best anwser to question: How can i get money to start my own business?

Debt financing

One of the most common sources of business financing is taking loans from financial institutions. If you provide them with an accurate business plan, financial institutions like banks can lend you a loan for your business. These loans are given at a stipulated rate of interest to be paid monthly to the bank. At the end of the loan term, the loan is paid back. Banks give loans on the basis of the potentiality of your business, its estimated cash flows, earnings, assets, etc. The main advantage of this source is the leverage these loans provide in your investment. With leverage, you can increase your income as you need not share your income with others as in case of equity financing.

Equity financing

This involves getting funds from private individuals and professional institutional investors in exchange for a share in the income of the business. The private individual investors are friends and family members while the professional investors include the venture capitalists, angel investors and strategic investors. If you are starting a large-scale business, you can raise capital by the issue of equity shares to general public. The main advantage of equity financing is that there is no risk involved in it. Even if there are no profits, you need not pay anything to the capitalists. The lenders will not take over your personal assets or your company as compensation for the money lent.


Another way in which you can avail funds for your business is through grants by the government or business development communities in the US. I think that is the best way to get money to start own business. To qualify for such grants you are typically required to start your business which focuses on a specific field such as technology, textile, etc. depending on the nature of the grant made available to you. These grants are given to new businesses that can help the economic development of the country or the community. These funds are highly competitive and not easy to obtain. Grants are particularly beneficial as they have no cost associated with them, considering the fact that they are free. Moreover, there is no equity sharing in the business by the agencies that provide grants. You can enjoy all the profits generated in your business.

Personal savings

This assumes that you have a huge wad of cash lying around and nothing else to use it for. You are asking yourself “how can i get money to start my own business” and it’s just that simple to find. It’s nice if you can pull it off, but few people have the necessary resources on hand.

Friends and family

This option works well when you don’t need enormous sums of money, but beware that business deals gone sour can spell doom to even the best of friendships.

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