Finding Money Advice

Most company founders and business owner probably would prefer to use someone else’s money—usually because they don’t have it themselves, of course. In fact, most successful companies started with less than $10,000, and few used outside sources of capital because most start-ups are simply unable to attract lenders or investors because their future is unpredictable.

So where do people get money to start a business?

2007 Inc. 5000 Startup Funding Sources:
82% self financed
22% loans from friends, family, business associates
18% bank loans
18% lines of credit
8% venture capital
4% SBA or other government funds

(the numbers add up to more than 100% because most start-ups use several sources)

In other words, except in rare circumstances, you have to scrape together a nest egg. You have to start small, stay lean, and don’t go out buying all kinds of things you don’t need. (That includes business cards and letterhead, by the way. What you need is customers, not the trappings of success.)

That’s all fine and dandy, but I still need to find more money than I have to get started, you say? Okay, let’s see who has money and what it takes to shake some loose. Keep reading.