Secure Start-Up Financing
Start-up financing (also called seed capital) is the fuel that will allow you to turn your idea into a viable business. This initial stage of funding should cover the preliminary expenses, such as market research and product or concept development, legal fees, and any early stage equipment and supplies, until the business is a sustainable entity that is generating sales.
Budding entrepreneurs have several options when it comes to raising the needed capital:
1. Personal assets- You can draw on personal assets, such your own personal wealth, home equity or insurance policy.
2. Seek out governmental grants/ programs- There are also several organizations and incentives programs designed to encourage small business development by, for example, providing access to micro loans, investment matching programs or tax credits.
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business.gov/startLoans.html - Governmental loan, grant, and financing search page
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Business.gov- Information on finding small business loans, seed and venture capital, and government grants.
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Grants.gov- Find and apply for federal grants.
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Small Business Association- SBA business loan programs
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usgovinfo.about.com/ - List of State Development Agencies for Small Business Grants
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http://www.cfda.gov/- Catalog of Federal Domestic Assistance
3. Angel investors and venture capital- Angel capital is a form of equity capital derived from wealthy individuals and experienced entrepreneurs, while venture capital is also made up of private funds from institutional investors. Angel and venture capital is generally offered to new companies with the potential for profitability and rapid growth in exchange for ownership shares and influence over company decisions. Angel investors, like venture capitalists, make their return on investment in the event of an Initial Public Offering or the trade sale of the funded companies.
Angel Capital Resources:
Venture Capital Resources:
4. Ask family and friends- You can tap the financial resources of your acquaintances to get your venture going.