One of the greatest hurdles any enthusiastic prospective business owner may meet
during the process of getting his idea turned into something real is to find
to actually get things started. However there are several options open to
the prospective business owner and here are some of the most important.

First of all you can approach a bank or any other debt-financing institution in
order to obtain a loan as your Startup capital. For this option you may need a well-drafted
business plan, accurate cash flow projections, a description of the collateral for
security, the debt-to-equity ratio, your financial history and your personal and
business credit profiles. In order to get your
Startup capital
from one of these
institutions besides the aforementioned steps you may also need to submit the last
tax returns and bank statements from the past three years.

You could also apply for a state or federal grant as your
Startup capital
. You can
approach the Small Business Administration and get a list of the available grants.
The grants are however highly competitive and have strict rules about the usage
of the money they’ll grant you. There is no guarantee that you’ll get a grant so
you shouldn’t rely on them totally as your Startup capital, keep other options open.

You can opt for equity financing as your Startup capital as well. This means that
you use your home to get a loan on its equity in order to finance your business.
However you need to be very cautious about this way of getting Startup capital because
if the business fails, you could end up losing both the business and your home.
Use this option to get Startup capital only if you’re sure that your business will
succeed. You could also use your insurance policy to get a loan as Startup capital.
You can get up to ninety percent of the cash value and the policy will stay in place
as long as you pay your premiums on time. Another option for getting Startup capital
would be to borrow against your 401(K) plan or try using your IRA funds. You could
also get your Startup capital from friends and family, but in this case it is better
to get everything in writing.

These have been only a couple of options to help in finding Startup capital for
your business.

It’s crucial to have a good business plan, confidence in your plan and the ability
to convince the lender that you are a
low-risk investment
. This can be accomplished
if you have accurate cash-flow projections for your business, if you have a very
clear idea of how you will utilize the loan amount, and if you’ve maintained a good
personal and business credit profile. It may also help if you established a relationship
with credit rating firms and if you get your traders and suppliers to participate
as well. Seeking a loan from a bank with which you already have established a working
relationship will prove very helpful. You need to have firm commitment to repay
the debt and be debt-free as soon as possible. If you are confident and have good
business acumen, finding Startup capital for your business will not be a big problem.

There are firms that offer services as well as products to help run a