How to Find Money to Start a Business

When you’re starting a small business you need to be able to fund your start up costs, and then keep the business above water while you are building a customer base. Some businesses can be started with very little capital, but some are going to require some investment to get going. You’re probably starting your own business to either make more money than than you are now, or make additional money to help with your family finances. So how are you going to add additional expenses to an already tight financial situation? You’re going to find the extra money you need to get started.

I would never discourage anyone from following an entrepreneurial dream, but I do want you to be realistic. Unless you have extra money sitting around or are just looking for a tax write off, you may have to get creative to find the money you need. People start businesses on a shoestring every day, so why can’t you? If you want it badly enough, you will make it work. The quickest way to sink a new business is to have more expenses than you can pay while still acquiring customers. Debt payments and exorbitant rent are expenses that will sink your business if your sales don’t grow immediately. So don’t start out behind by spending more than you can make in the very beginning.

You may feel like you have to pay for some things on credit, but I would limit these expenditures to the things that you are sure will help you make more money in the long run. For the expenses that aren’t as critical, I have a few suggestions for finding the money you need to get up and running.

1. Look through your personal finances. I would almost guarantee there will be extra money you can find if you do a personal budget. I encourage you to get a handle on your personal finances before you try to run the finances of your business, if you don’t, you are setting yourself and your small business up for failure. Follow these steps to setting up a personal budget, then decide how much of your personal income can be allocated to your new business.
2. Try to barter services. I have helped set up businesses in exchange for auto repairs, hair salon services, and miscellaneous goods. I always record these transactions on the books, I don’t advocate running anything under the table when you have your own business. If I don’t need the cash to pay bills, getting my vehicle maintenance done still helps our family budget. Don’t be afraid to ask if someone will barter with you, and always put a dollar value to what you are exchanging. I don’t want to be upset because I just performed a $300 service in exchange for a $20 haircut. Depending on what you can offer, bartering can be a great way to get your logo designed, your website set up, or your accounting system set up. Don’t limit this to your business expenses only, think about trading your product/service for babysitting services while you are working.
3. Sell something. Or sell everything if you need to. Clean out your garage and your closets and see what you can sell for extra cash. Decluttering will help make room for your new business anyway. Sell anything you haven’t used for a few years, I almost guarantee no one will even miss it.
4. Dial down your phone and tv services. Honestly, you are going to be pretty busy getting your business going, you aren’t going to have a lot of extra time for tv watching or scrolling through social media.
5. You don’t need a new vehicle for your business. Your clients really don’t care if you drive a brand new car or an old one, they just want you to provide a good product. If you are going to be working from home, maybe you don’t even need as much vehicle as you already own. If not, sell it and get a reliable, less expensive vehicle and put that extra money toward the business. Same goes for equipment. You can use an older computer, printer, desk, shelving. As long as these things are functional, they’ll do just fine until you have the business income at a level that justifies buying new equipment.
6. Start your business out of your home. If you can work from your home computer, or out of a spare room or garage, you can save a lot of money. If not, think about space sharing solutions. Don’t be afraid to rent space from an existing business, these situations can help both of you. Think about the coffee shop that’s within a bookstore. I have a client that offers the ability to get your hair cut while you get your oil changed. If you need to meet with clients in person, look into an office sharing program where you only pay for the days that you schedule meetings with clients and work from home the rest of the time. Be willing to meet with people via Zoom also, it saves both of you time in your schedules. Rent a storage shed to hold inventory for a short time. Think outside the box for inexpensive solutions for this short time while you’re getting started.
7. Shop garage sales, online sales sites and auctions for the additional equipment or material you may need. You don’t need new, you need functional. A landscaping business needs a lawn mower that cuts grass, no one cares if that lawn mower is new or old, just that it works. I’ve seen boxes of fabric and yarn for sale at the thrift shop for pennies on the dollar.
8. Keep your day job, even if just for a while longer. Buy the things you need to get started while you’ve got this income, and you’ll spend a bit of time building your customer base anyway, so having some steady income for a while is going to help a lot until you get to the point where you can replace your current income with your small business income. This may mean taking side jobs you work on in the evenings and weekends, but remember that it’s only for a short time.
9. Think about anything else can you do to earn some extra money that may not be related to the business you are starting? Can you clean houses for a while? Babysit? Take a part time job in a place where you can meet potential new customers for your new business, like a coffee shop?

Your main goal here is to come up with the money you need to get started in your own new small business. You are passionate about what you want to do, you will come up with ways to find extra cash that won’t strain your existing family finances or your new business finances. Be patient, buy used, and build your new business at a sustainable rate. Remember, when this business is wildly successful, you will be able to do the things you want, tightening up your budget is just a temporary step to get you where you want to be.