Best way to get money for business start up

[Optico]

chose the best way to gain money for a business start up, give advice if you know any.

[Karbonize]

I'm trying to get a grant, but it's not working to well. I wouldn't advise maxxing out credit cards unless you're 100% sure you'll be able to pay it off pretty fast.

[pboychuk]

Personally I dont think maxing out CCs and raising money on your own should be in the same category. because I have never held a balance on my CC, yet I have not recieved any type of aid for my business, Basically I start with a certain ammount of money and allow the business to grow as money is earned

[jasaunders]

Is this a serious thread?

Different people will have different risk preferences, different opportunities available to them, and different financing needs. There is no "best way" to fund a business.

[FullPotentialAdv]

business plan seek investors, or ask family

[CreativeIdealist]

You know, I have been around the block a time or two. I have taken the path where I have asked my family and been denied like you wouldn't believe. Its hard asking for money from family. If they truly believe what you are doing, they may go for it but be prepared for the constant scrunity.

Maxxing out credit cards is only and if only you know you'll be making that money back..

Sitting down and writing out a plan that is thought provoking and geared to be a success, giving you insight in your life, needs and the business (priceless)

I'd go with the business plan, myself..

[Optico]

I would also go with writing a business plan and thats what im working on now

[akula]

this a useless thread because it ignores 92% of how entrepreneurs finance their startups; which is through savings, trade credit and customers (i.e "best way to get money for start up" = none of the above)

besides....cost of capital is calculated in wacc, as such, the question ought to be "which alternative = lowest wacc?"...it is impossible to calculate which is "the best" way to finance a startup, unless all the different ways are equated to a comparable percentage.

[akula]

You know, I have been around the block a time or two. I have taken the path where I have asked my family and been denied like you wouldn't believe. Its hard asking for money from family. If they truly believe what you are doing, they may go for it but be prepared for the constant scrunity.

Maxxing out credit cards is only and if only you know you'll be making that money back..

Sitting down and writing out a plan that is thought provoking and geared to be a success, giving you insight in your life, needs and the business (priceless)

I'd go with the business plan, myself..

lol, someone's been drinking

[CreativeIdealist]

lol, someone's been drinking

Don't know how you came to the conclusion of me drinking but ok..

My statement may be a bit off center but...

I don't think maxxing your credit cards is a good thing..

I do think raising the cashflow yourself is a better route to go..if you don't mind busting your a** for several hours a day.

this a useless thread because it ignores 92% of how entrepreneurs finance their startups; which is through savings, trade credit and customers (i.e "best way to get money for start up" = none of the above)

Can I see the stats on this statement please? Nothing is useless, the OP wanted to see what other people thought about raising capital for a business. They may have interpreted the maxxing of credit cards as a "way" of raising funds themselves..

Its been documented that asking family for money is the WORST thing you can do in business. It works for a small percentage of people but not enough to make a difference..

Don't you know the sequence..

Borrow from family, create bad blood/feelings
Maxx out credit cards, lose everything you have..
Create a business plan, present it to investors, the worse they can say is no..
Get a grant because you fall under some category that you qualify for. (everyone wins)
Raise the funds yourself, but this is hard and requires immense discipline..

[Braviq]

I'm all for creating a plan and getting the business loan. Credit cards mean you're personally strapped to the company.

[Cole Taylor]

I sense a lack of conviction from those who decide not to explore all options and do whatever is necessary, i.e. credit cards.

I will, have, and would:

- Beg, borrow, and steal
- Mortgage the house
- Borrow from any family member who will pick up the phone
- Sell my soul

Any of you planning on going into a venture that requires a substantial amount of capital better be willing to put it all on the line. Unless you have a vested interest, or a stellar track record, it’s going to be hard to get investors involved.

Show me an entrepreneur who hasn’t been dead broke at least once and I’ll show you someone who is either from money or simply not trying hard enough.
I believe the answer is whatever it takes.

[CreativeIdealist]

I sense a lack of conviction from those who decide not to explore all options and do whatever is necessary, i.e. credit cards.

I will, have, and would:

- Beg, borrow, and steal
- Mortgage the house
- Borrow from any family member who will pick up the phone
- Sell my soul

Any of you planning on going into a venture that requires a substantial amount of capital better be willing to put it all on the line. Unless you have a vested interest, or a stellar track record, it’s going to be hard to get investors involved.

Show me an entrepreneur who hasn’t been dead broke at least once and I’ll show you someone who is either from money or simply not trying hard enough.
I believe the answer is whatever it takes.

This is a great response, I agree that its all about getting the dough. I guess I am getting old and am drinking...lol

[chuff1026]

I went to family and they wanted a business plan..lol...so i presented it and got the money..but i don't like taking money from family.
:S

i won't mess with credit cards

I will build business credit..
if you know what you are doing, $500 can get you 60K in business credit in 6 months...

[BusinessAdviser]

Its been documented that asking family for money is the WORST thing you can do in business. ..

Please provide the documentation. This goes to your own credibility now.