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How to Get Money to Start a Small Business


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This article will tell you how to get money to start a small business.

There are three ways to fund your start up business.

First, you can “bootstrap" it. This means you take money from your own savings and then invest the profits back in the business. Business owners who bootstrap their businesses often have a bare bones operation. They do not pay for any frills and they do much of the work themselves as they do not want to spend money on employees or contractors.

Next, you can bring on investors. An investor can be active in the business, semi-active, or silent.

An active partner can help you with the daily operations of the business. In a way, this is like two people “bootstrapping" a business together.

A semi-active partner has a financial investment in the business and is there to give advice and support. He or she does not take part in the daily activities of the business though.

A silent partner has invested money and wants a return on that money, but does not have any say in how the business is run. Often, family members or friends who believe in you and your concept of the business will invest money but don't have ideas or skills to offer the business.

Finally, you can take out loans.

If your business start up costs are low, you can use your credit cards as a supplement to any savings you have.

However, if your financial needs exceed what you can get from a personal line of credit, you are going to need a business loan. This typically means working with Small Business Administration backed bank loans. In this case, there is going to be significant paperwork and you will be required to produce a business plan.

Are you wondering how to get money to start a small business? You can bootstrap it, take on investors, or take out a loan.

If you know you want to start a small or home based business, but you haven't come up with the final business idea, you should take a look at

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