Get the seed money you need to start your dream business.
Raising seed money for your new company can be the most difficult part of the business process. Seed money is the initial capital that you need to get the business off the ground. It should be enough to get you to a point where you can raise even more money--millions of dollars--as venture capital. Some people call this the "friends and family" round because many people get their start by borrowing money from their loved ones. While that is a good method, you can raise seed money in a variety of ways.
Instructions
1. Look at your own bank account. The best source of funding for your new business may be taking a loan from yourself. Use some of the money that you have in your savings account to get started. This has an added advantage of looking good to other investors--they can see that you believe in your business enough that you are willing to risk your own money.
2. Ask the bank for a loan. With a good idea, the bank may be able to offer you the seed capital you need to get started. Some banks offer loans that have government backing--Small Business Administration or SBA loans--which are easier to get and which have a lower interest rate. You'll need good credit and a plan to pay it back.
3. Apply for credit cards. You'll have to pay a higher interest rate on credit cards than you would for an SBA loan, but credit cards are a convenient option.
4. Seek out an angel investor. An angel investor will give you the money that you need in exchange for a percentage control of your business. This can earn you the most money, but you do have to give up some control--some investors may not like the decisions you've made so far. Angel investors are typically only interested in large-scale technology-focused businesses and it's very difficult to get seed money from an angel investor. They're more likely to fund the second stage of your business, after it's started to show its profitability.
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