56 Ideas To Fund A Startup

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29 June 2010 11 CommentsBy Sarah Shaw

Who isn’t hoping for money to fall from the sky when launching a new business right? In this fast moving world, there are always new ways popping up to win, find or earn money every day. My 56 Entreprenette Experts in this post, share ideas that worked for them, links to business loans, and other fresh ideas……PLUS, some super cool contests out there!! No excuses now……if you need our votes, post it in the comments below and let’s see if you can help each other out. And…..We’d love to learn about other ideas so feel free to post those in the comments too.

1. Investing in yourself

Best Funding Idea: When I launched my home improvement contractor referral business, money was tight. Although I knew my start up expenses would be minimal, we had no extra cash to invest. I had just left a full time job, we were new homeowners and we were living on my husband's teaching salary. After investigating numerous options (loans, investors, etc.), we ultimately took a $5000 loan from my husband's retirement savings plan. I had 5 years to pay it back at a minimal interest rate.

Thanks to: Debra Cohen of Home Remedies of NY, Inc..

2. Funding Startups via Customers

Best Funding Idea: Build a business that can support itself with its profits. If you can't accomplish reasonable profits withing a few months, then your business will have to raise money other ways, but you can bootstrap for a very long time if you can make enough profit to just get by.

Thanks to: Danny Wong of Men's Custom Dress Shirts | BL.

3. Work with an ex expert

Best Funding Idea: When it doubt about where to find funding, consult with retired financial professionals who has been in the banking or funding industry. You can usually find them at networking events. They know how to play the game and have the inside contacts that you need.

Thanks to: Jonathan Nowling of Rock Hill Lavender.

4. Your City Can Help You!

Best Funding Idea: We found this out a little late in the game and I wish that someone had told me about it. Most cities have what is called a "Local Development" program, where they offer low interest money to startups. Best of all its easier to apply for and get than most banks and of course you can't beat the rate!

Thanks to: Julie DeFruscio of Girly Girl Studio Custom Handbags .

5. Sell that Stuff!

Best Funding Idea: Did you know that most people have between 2K and 10K dollars worth of UNUSED stuff just sitting around the house? When I first started my biz and needed cash, I would sell stuff on Ebay. My closet would be clean and I would have more cash to put into my business. Sell last year's handbags and clothes on Ebay, and use Craigslist for bulky items such as furniture and appliances. You can even host a neighborhood yard sale.

Thanks to: Brandi Hamrick of You Grow, Girl!.

6. People want you to succeed...

Best Funding Idea: So ask them.
Love Money. A favorite source of funding a franchise or small business, outside of one's own personal savings, is money from friends & family. If you are borrowing from anyone other than a bank, we have these recommendations:
•Document the loan – a simple promissory note works
•Agree on repayment terms with reasonable interest
•Set clear expectations up front about risk
•Make prompt payments
Just ask!

Thanks to: Richard Simtob of FranchiseSforSale.com.

7. Two Books to Fund Business

Best Funding Idea: This is not so much a single tip, but two books that can change the way you fund your start-up. First Rich Dad Poor Dad will get your thinking straight about money and business. Second, From Credit Repair to Credit Millionaire, Donna L. Fox will give you a totally different insight into how to get credit for your business. Banks are getting tighter with the new regulations, small business will be squeezed, these ideas are gold in today's environment.

Thanks to: Harlan Goerger of H.Goerger& Associates dba AskHG.com.

8. Finding Funds

Best Funding Idea: For entrepreneurs and small business owners, one great opportunity for funding is AccionUsa. They have money, but you must have the answers. Be prepared! A business plan is a must, and you must have some money invested in your idea. 2 sound lending principles.

Thanks to: Bill Horton of BizFix.

9. You Don't!

Best Funding Idea: Take a different approach. Instead of finding a traditional business that requires a ton of money to get started, ask yourself what you can do with just a laptop. Graphic design? Consulting? Copy writing? Analytics? Accounting? The list is endless. There are tons of good businesses that don't require anything more than internet connectivity to get going. So don't break the bank, get an office, go into debt, etc; start a business that you couldn't start 20 years ago using the internet.

Thanks to: Tony Adams of 214 SEO.

10. Apply for everything!

Best Funding Idea: The first place we sought funding advice was our local council. These are usually small grants of £500. Seek out competitions and awards in your specific field. We applied to Grazia Magazine for a business award,we didnt win but were shortlisted down to the final 5.We received great coverage in Grazia UK, which resulted in orders. Dont think that you are not quite what they are looking for. Just apply, you may be pleasantly surprised!

Thanks to: nina halliwell of Nook & Willow.

11. Work hard for your seed money

Best Funding Idea: Before working for myself full-time I worked at a bank. My manager let me work overtime because if I did the work, then he didn't have to. Every minute over 40 hours I worked I earned time-and-a-half and that money I set aside for my business as start-up capital. Some weeks it was 5 hours of overtime, others it was 20 hours. In a single week I worked 71 hours. It was arduous, but it was worth putting in the time then to be free from a day-job.

Thanks to: Alexa Allamano of Foamywader.

12. Wooing your Angel (Investor)

Best Funding Idea: The term "angel" originally comes from Broadway where it was used to describe wealthy individuals who provided money for theatrical productions (Wikipedia). Well how appropriate since the name of my first product was the "Broadway"Vanity Desk. My Angel Investor wanted to see that there was a viable market for my idea, so my company was launched from a Wordpress blog and an EBay store that I created myself.

Thanks to: Maxine Tatlonghari of Vanity Girl Hollywood.

13. Keep an Eye out for Contests

Best Funding Idea: Watch TV and the Internet for contests. By creating a short video, I won a great contest by Office Depot called Survival of the Smartest, for small businesses, which awarded me a very generous amount of office supplies.

Thanks to: Jennifer Reich of The Mommy MD Guides.

14. "Refreshing" Rewards (Grant!)

Best Funding Idea: In case you haven't heard, Pepsi is diverting their advertising budget to people with good ideas! All year, they're awarding 32 (yes 32!) recipients a total of $1.3 million per mo. in different categories & dollar brackets. The top 10 vote getters in each bracket win the amount requested for their good project. You can register (or vote) here: www.RefreshEverything.com

Thanks to: Leslie Haas Clanton of Beverage Solutions.

15. Finding Start up Funding

Best Funding Idea: My funding source for start up was money from family.It is the best loan source,they know your references,usually charge less intrest & sometimes will waive that late fee if your payment is late.Your local SBA does not actually make loans,but they help small businesses prepare for the loan process & can be a good reference when you apply.Think outside the box;when I was behind on bills I raffled an expensive piece of stained glass & paid my bill, while I added to my customer database.

Thanks to: Sherri Rhodes of Stained Glass and Wood Craft .

16. Get Clean and Make Green

Best Funding Idea: Depending on the size of your start up going through your home and garage and listing any unused items worth $5 or more on Craigslist.org or having a garage sale can raise the capital needed to get started. This could potentially pay for the purchase of a domain name, a years worth of hosting and some graphic design work all without having to dip into the normal monthly budget.

Thanks to: Tyler Jorgenson.

17. Inadequate Funding

Best Funding Idea: Many startup business owners significantly underestimate the amount of money it will take to get their business off the ground. It’s for this reason that many are unable to grow. A good place to start looking for funding is through the Small Business Administration (SBA). The SBA Loans Program has three types called Express Programs, which are: SBA Express; Community Express and Patriot Express. These programs offer streamlined and expedited loan procedures for particular groups of borrowers.

Thanks to: Dr. Madeline Lewis of Deline Institute.

18. How to Fund a Startup

Best Funding Idea: One of the best ways to fund a startup especially if you don't have great credit for the traditional loans is to go to micro loan organizations such as Project Entreprise in New York City. Entrepreneurs and business owners can google micro loan organizations in their area and find a list of places they can go to get small to mid-size loans.

Thanks to: Eula M. Young of Griot's Roll Film Production .

19. Home Equity Line of Credit

Best Funding Idea: I wasn't quite prepared to apply for a small business loan so I met with my banker and he advised me to take out a home equity line of credit. For me, it involved, no closing costs, a very low interest rate and it is super easy to transfer money directly into my business account. I am able to manage all of our accounts online as well as paying off the line of credit.

Thanks to: Sheena Edwards of Lizzie Lou Shoes.

20. Save your Money!

Best Funding Idea: When I was going to start my business, I saved my money while I had my current job, and only left my job when I had enough money to at least run my business and had a few paying customers so I had some money coming in. I bought everything to set up my office while I still had my job and a paycheck, such as my computers, printers, fax machine, letterhead, business cards and supplies.

Then when I left my job, I kept them as a customer as well so I had that income while I marketed more.

Thanks to: Michelle Dunn of Michelle Dunn, columnist, author.

21. Show Me The Money!

Best Funding Idea: I used a milestone approach to raise $250K in 3 rounds over 1.5 years to fund my bootstrapped startup AboutOne.com. Investor presentations included product description, pain addressed/solved, market potential, milestones, investment objectives, revenue generation plans, and 5 year financial models. I evaluated team members according to their willingness to invest - given their circumstances. Founding members who invest show commitment to the venture - push them forward in management.

Thanks to: Joanne Lang of Organized and Prepared.

22. Linking Value to Investing

Best Funding Idea: When raising capital, an entrepreneur must show how the funds will be used and the benefits that will be achieved. The initial funding round is typically one in a series. To raise additional capital or capital at a higher valuation, the company must be able to use that capital to make measurable improvements, including completion of beta product, signing of first commercial order, generating $X in revenue, reaching profitability, hiring additional personnel.

Thanks to: Michael C. Gruber of Cornerstone Angels.

23. Learn How The Money Flows

Best Funding Idea: Virtually every major city has an economic development ecosystem. You need to find someone into that ecosystem and learn how the money flows. Knowing the people who run tech councils, incubator programs, and government-funded seed stage programs is key to getting an upper hand on gaining these investments. Plus, the long term advantage is these types of people are also well-connected in the VC/angel community—they can make introductions.

Thanks to: Don Charlton of The Resumator.

24. It's tough, but rewarding...

Best Funding Idea: Raising capital is much like finding a new job: your resume is your business plan. If you don't have a good business plan, you're fighting uphill from the start. You need something an investor can review and understand. Pinpoint your funding opportunities. Remember, all investors are not alike; find the right type of investor for your idea/start-up.If you don't have anyone in your network to help you make the introduction, use websites that are geared for this type of communication.

Thanks to: Nathan Heerdt of Go Big Network.

25. Turn Your 401(k) Into Capital

Best Funding Idea: One source of financing that is commonly overlooked is a 401(k) or and IRA. You can have a CPA law firm set up a C-corporation and roll an existing 401(k) or IRA a into their own 401(k) fund, penalty free. Then, you can literally buy stock in your own company without penalties, without problems. This is a great source of funding for entrepreneurs and franchisees looking to get into their own business.

Thanks to: Doug Schadle, CEO of Rhino 7 Franchise Development Corp..

26. Look for grants!

Best Funding Idea: I got some much needed funding help through a state grant from the local Small Business Development Center. I went there looking for general help and guidance and found out about a grant program, where I got teamed up with a local web development company, and the grant covered over half of the cost of my website. I couldn't have afforded a high-end professional website without that grant money!

Thanks to: Mallory Whitfield of Miss Malaprop.

27. Self Employment Assistance

Best Funding Idea: One bit of advice on financing that is often overlooked is SEAP (Self Employment Assistance Program). It is part of unemployment assistance and can be used by those who are recently unemployed and interested in starting their own business.

Thanks to: Michael Makarius of Makarius Consulting.

28. The Power Of Free

Best Funding Idea: Create something useful for your target audience in the way of a report, presentation, or even just helpful hints or links to press articles. Send it out to everyone you know who is in your target niche. I've secured relationships with executives from some of the largest companies in the world using this method. The more you help other people the more your business will grow.

Thanks to: John Paul Engel of Knowledge Capital.

29. Need Funds? Start at Home...

Best Funding Idea: The best sources of start-up capital are: 1) your own savings (if any) and 2) friends and family. With friends and family, be prepared to structure their investment as a fixed-term business loan with an interest rate calculated using simple interest (3-4% per year). Friends and family will likely not ask for equity and it should be relatively easy to negotiate a loan extension. Don't even think of banks or venture capitalists until you've raised as much as you can from friends and family.

Thanks to: Paul Lewis of Start Me Up.

30. Find complementary partners

Best Funding Idea: Find a partner outside of your industry. Who can you partner with that isn't a direct competitor, who sells to your same market? Offer something of benefit to them (co-marketing opportunities, blog writeups, customer referrals) in exchange for funding, support, or access to resources that you need for your business.

Thanks to: Carolyn Goodwin of Cake Communications.

31. Grants for Local Business Love

Best Funding Idea: A great site for small businesses to compete for grant money is www.lovealocalbusiness.intuit.com. The site, hosted by Intuit - makers of the QuickBooks software - gives companies the chance to earn grants from $5,000 up to $25,000. The only catch? Locals who frequent the business must share some online praise through short sentences on the Love A Local Business website. Each month Intuit picks a winner for the $5,000 prize. All monthly winners are then entered to win the $25,000 grand prize!

Thanks to: Aliya Jiwa of Spunky Stork.

32. Shoestring Budget

Best Funding Idea: I have experience bootstrapping in the very literal sense of the word.
In my case, I make dog products, and when I started the company, it
was with less than $500 in my spare bedroom.

In 7 years time, I have built the company from me by myself in my
spare bedroom to 14 employees in a 2500 square foot facility.

These days, it is SO much easier to bootstrap a small company with networking sites like Facebook and Twitter. It just takes hard work and patience.

Thanks to: Alisha Navarro of 2 Hounds Design.

33. Use your eligible 401K funds

Best Funding Idea: We are self-funding our start-up. We could not get any funding from local banks (tried at least 5 - same story from all of them). We took a loan from husband's 401k - maximum allowed without a hardship. We can still participate with company matching (yes, husband is still working in Corporate America until this thing takes off) and the interest we pay on the loan goes right back into the 401k.

Even if my husband is laid off, we can still pay as scheduled.

Thanks to: Lisa Brisch of Orange Pomegranate, LLC.

34. Have a customer

Best Funding Idea: If it’s such a good idea, someone will buy it. Find someone with the problem you want to solve and work to solve that customer’s specific problem. You can offer discounted pricing, or a pay-for-performance contract, or a high degree of customization to help entice the first sale. The most important thing is that someone was willing to fork over some amount of cash to use your product or service demonstrating the value of what you offer. That speaks volumes to a potential investor.

Thanks to: Mark Herschberg of White Knight Consulting.

35. Lease Your Expertise

Best Funding Idea: An often-overlooked solution for some scalable startups is to lease some of their expertise by offering services even while working on a prototype. So an intelligence software startup might help fund itself by offering intelligence consulting services to a government agency. The consulting or other service work generates income and can help establish a relationship with a future product purchaser. It's not a path for everyone, but for some would-be venture-backed companies it can mean survival.

Thanks to: Tonio DeSorrento of Orrick, Herrington & Sutcliffe LLP.

36. The Hilda Factor

Best Funding Idea: When raising money from angel investors, not only must your "pitch" be nearly perfect but you should remember that the angel will most likely go home and tell his or her spouse about it. If they are able to quickly able to explain to "Hilda" why it is a good investment, you are almost home. If you ignore this key element, you will most likely not get an investment. This is why a metaphor for your business is so powerful--this business is like ABC, Inc with these changes...

Thanks to: GL Hoffman of LinkUp.

37. Services Boost Early Income

Best Funding Idea: If your new business will sell a product, then there is nothing wrong with selling a service on the side when you are first getting your company started to boost cash flow. For example, if you used to be a brand marketer at a big company you can offer your skills out to smaller companies while you are growing your core product line. The cash flow you get selling a service will help you make the transition from getting a salary to owning your own business that generates revenue.

Thanks to: Healy Jones of OfficeDrop.

38. The "No Funding" Option

Best Funding Idea: From the outset, I decided to run my business with no outside funding. While it might have been nice to have a pile of cash to work with at the outset, going without outside funding forced me to be smart with every dollar I spent. It also made me even more determined to build my business quickly and intelligently.
The result is that Blue Fountain Media is thriving (great clients, over 70 employees) and I have been able to run my business based on principles I feel strongly about.

Thanks to: Gabriel Shaoolian of Blue Fountain Media.

39. Effective business funding

Best Funding Idea: Sell your business invoices (factoring). Your business gets money up front while the factoring company waits for payment. When the customer pays, the factor retains a nominal fee. This is especially useful to companies that do not have long operating histories or a strong credit history. Transaction approval depends on the strength of the customer rather than the business. The business gets to use the money right away for its capital needs. This is debt-free, flexible and very effective.

Thanks to: Ella Zalkind of Action Business Solutions, Inc..

40. Funded by American Express

Best Funding Idea: Several years ago I funded my start-up company by getting an American Express business card and using it to pay for advertising to attract clients. Thank God my strategy worked and I attracted clients so I could pay off my American Express balance each month. This is obviously a very high risk way to obtain start-up capital, but if you do not have much overhead, it can be a useful way to get your business off the ground.

Thanks to: Peter Geisheker of The Geisheker Group Marketing Firm.

41. Find an Angel Investor

Best Funding Idea: Apply to the Open Angel Forum. It’s a free event (for entrepreneurs) that provides access to a large group of active angel investors. Jason Calacanis, the founder of TechCrunch50 and Open Angel Forum, organizes local Open Angel Forums in major cities in the US. It’s a great way to build your network, get experience pitching and attract great partners and investors.

Thanks to: Stu Wall of Postabon.

42. Rent A Fabulous Apartment!

Best Funding Idea: When starting my own business, I recognized that I wasn't in a position to pay rent for an office and an apartment. I decided that if I was going to "work from home," I might as well live in a fabulous space that made me happy to work in everyday. I decided to rent a beautiful downtown NYC apartment with a third floor lounge & meeting room, a fully furnished roof deck, and tons of "young entrepreneurs" who are doing the same thing as I am (great for networking!). Plus-now I can "write off rent!"

Thanks to: Christina Cozzi of Cozzi Communications.

43. Market To Get Funding

Best Funding Idea: When seeking angel money, you need to understand that getting financed is a marketing project – you’re marketing the future potential of your business. To do so successfully, you need to understand the angel investors who are your target market. They are smart investors. They don’t need to invest in your business to become wealthy. In fact, they have millions of other options. You need to be able to tell them convincingly why they should invest not only in your company, but in you.

Thanks to: Dave Kowal of Kowal Communications, Inc..

44. Limiting Expenditures Is Key

Best Funding Idea: Limiting expenditures can be even more important then funding. When starting our online store we made sure to start with as little inventory and expenses as possible. We created a wish list of things we wanted to do with our site as well as a plan for our next phases. However, we did not act until we thought the business had made its money back. By gently tip toeing into our online store, it gave us the confidence to see that the concept would work before getting head over heals in debt.

Thanks to: Brandon Fuhrmann of Ownapainting.com.

45. Inputs, Outputs & Diversify

Best Funding Idea: Cultivating committed funders takes effort. When you raise funds, make those funds work for you. Never stop bootstrapping. Use those initial funds scrupulously so you can spend less time fundraising.

You diversify your personal portfolio--so should you with your business. Have a strong mix to protect your initial and longterm growth. Marry that with scrupulous use of your funds to maintain yourself over the longhaul. Funding isn't just closing a win. It's managing it and making it last.

Thanks to: Pamela Hawley of UniversalGiving.

46. You Gotta Know the Basics

Best Funding Idea: A great idea for bootstrapping your business is to learn all the basic skills you will need in order to succeed at the early stages. In the case of my company, I learned basic website programming and basic SEO which got us by for several years until we could afford real professionals to do the same tasks.

Thanks to: Marc Anderson of TalktoCanada.com.

47. Financing Equipment Purchases

Best Funding Idea: An investment in the equipment to start a business could be several thousands of dollars. Search out equipment wholesalers who help new business owners obtain financing. For example, anyone launching a carpet cleaning business should pursue funding for equipment from an established vendor. This allows the new business owner to spread startup costs over the useful life of the machinery, breaking down a large investment into manageable monthly payments.

Thanks to: Gail Reid of Gail Margolies Reid, CPA and Author.

48. There still are funders

Best Funding Idea: Contact local representatives (usually nonprofit lenders or equity investors) of the following associations:
Association for Enterprise
Opportunity www.MicroEnterpriseWorks.org
Community Development Financial Institution (CDFI) Coalition www.cdfi.org
Community Development Venture Capital Alliance www.cdvca.org
Opportunity Finance Network www.OpportunityFinance.net

Thanks to: Eric Loewe of ECDC Enterprise Development Group.

49. LinkedIn for Aspiring CEOs

Best Funding Idea: Entrepreneurs are more likely to succeed securing initial project funding when they properly apply the power of social media vehicles, e.g., LinkedIn. Business owners must complete a LinkedIn profile in detail & demonstrate: What experiences make them knowledgeable, Why they are important, What can they do for their colleagues. Because LinkedIn is the #1 professional online social media search engine, having an active presence is essential for aspiring CEOs wanting to secure beginning capital.

Thanks to: Eve Orsburn of Social Media Delivered .

50. Funding for Disabled Owners

Best Funding Idea: There is a unique "funding" option for people with a disability who can’t function in a traditional job setting. It doesn’t provide dollars. It does pay the bills for goods and services, including training, to start a one-person business. It requires a self employment plan, which is a simplified business plan, and financial projections. For more information, contact your state agency about self employment. In Texas, our state agency, DARS, calls this the "Self Employment Plan Program".

Thanks to: Jan Triplett, Ph.D. of Business Success Center.

51. Bet on the Jockey Not theHorse

Best Funding Idea: Founders of a new company must have a substantial background in the company’s area of business, whether it was working for a company in that space or having specific technical skills. Even with the most innovative technology or product, it is nothing without the right team behind it. It is a major plus if management can show a historical track record of improving sales, profits, margins, products etc. An old saying in the venture capital world rings true, “bet on the jockey, not the horse.

Thanks to: Andre Peschong of DealFlowDiaries.

52. Your Growing Personal Network

Best Funding Idea: I've been part of 5+ startups and my advice on the best way to get a startup going is to attend networking events in your space and create real relationships with potential partners.

All my businesses have been online, and the people I've met at conferences for search marketing have opened up my options well beyond friends and family for funding a new business. With loans so hard to get now, your personal network is more important than ever.

Thanks to: Nathaniel Broughton of Growth Partner.

53. Share Employment Earnings!

Best Funding Idea: For low capital startups, finding living expenses are oftentimes the biggest challenge. One option is to form a partnership where some of the patners work fulltime on the startup, and where some of the partners work fulltime at their regular employment (and help the startup in their spare time). Particularly helpful if the startup requires a large time investment (eg. software development), this approach can give startups both flexibility and a stronger financial footing.

Thanks to: Keith Chung of Veribook.

54. Don't forget Rich Uncle Joe!

Best Funding Idea: The first round of funding for a venture should be personal savings followed by friends and family. There are two reasons for this:1) Friends and family will invest in your business because they believe in you, even if they don’t believe in the business idea;2) Drawing down your personal wealth and that of your family and friends sends a positive signal to outside investors. If the venture is too risky for you and your personal network to invest, it sends a very bad signal to outside investors

Thanks to: Michael Mason of EssentiaLegal, P.C..

55. Raising Capital is Easy When..

Best Funding Idea: I have been successful in raising significant funds by networking with successful business people and building relationships with them. The best groups so far are CEO Space, www.ceospace.net, and The Ritz Group in Atlanta, http://theritzgroupatl.com. Total capital raised by me through these groups is $340,000 to date and will quickly be $1M plus!! The main reason these groups work for entrepreneurs is & investors is the fact that they are designed to build relationships between the two parties!!

Thanks to: John R Hobbs of Oasis Global, Inc.

56. Finding Money in Diapers

Best Funding Idea: There's a great new program called MomInspired by Huggies that grants up to 15K https://huggiesmominspired.com/ for ideas making life easier for Moms. The grant writing process is involved but mirrors the same content we needed for a successful million dollar NIH grant (Small Business Innovation in Research) researching Buzzy for immunizations. Save your Huggies application, it is a great structure to apply for other grants. The site also has GREAT step by step resources for start-ups.

Thanks to: Amy Baxter of Buzzy4shots.com.

11 Comments »

Matt Seiling said:
If you own your own home, there is a lot more captial in it than you probably know. Do a free home assessment and find out what your home is now worth, chances are it’s more than what you owe on it. Then you can go to the bank and get a line of credit for the difference. It’s a great way to make your living quarters work for you, instead of cost you money.

I always like to think of it as using someone else’s money (the bank’s) to fund my business without their permission!

You’ll be surprised at the results.

# 29 June 2010 at 10:35 am
Startup Funding said:
This is a great resource packed with many practical ideas. Thank you.

# 29 June 2010 at 11:29 am
NSBA Corp said:
This is a great list Sarah. I tweeted this to my followers and facebook fans . This list is very valuable to business owners.

# 29 June 2010 at 2:41 pm
Ashley said:
This is a very interesting reading Sarah thank you for this post.

Related, entrepreneurs and startups seeking funding may also want to join http://www.adwebix.com – an online service that connects entrepreneurs with investors.

Members can post funding requests, create profiles and contact other members.

It’s free and very easy to use.

# 30 June 2010 at 3:38 am
Friday Links – Outfit Post and Links Galore! said:
[...] Etsy Momentum — 5 Crafty Business Resources You Should Know. I’m also included on this post, 56 Ideas To Fund A Startup, at The Entreprenette [...]

# 2 July 2010 at 10:39 am
Susan said:
Great ideas Sarah – thanks for sharing!!!

# 2 July 2010 at 11:51 am
Theresa said:
Hi Sarah,

You need money to grow your business?

Don’t ask, “Who’s going to lend me money?”… the bank? My family?

Change your question to, “What are different sources of capital?”

The possibilities are endless. Leverage from collateral. Other people’s credit. Creative debt such as capital in exchange for equity. Time or labor in lieu of cash. Collaborative opportunities. Overlooked assets.

Thanks for the article and many thanks to your Entreprenette Experts!

Theresa

# 2 July 2010 at 12:42 pm
Sharon said:
Sarah,

Great topic!

When the banks says no and you’re a B2B and or B2G start up with contracts there is an alternative to debt and equity financing available! There are trillions of dollars available from the private asset based financing world. Start-ups can gain access to this world by having Contracts, Purchase Orders and Accounts Receievables as these are all assets that can be leveraged. By leveragin these assets it will give you the upfront working capital needed to fill the contract or order for your commeical client. Best part no long term debt, no giving up one ounce of your business in equity and no credit rating needed.

Sharon Evans

# 15 July 2010 at 4:07 pm
Marco said:
Nice work Sarah and thank you for putting this together.

Some other ways to fund your start up that require no personal credit checks or guarantees are vendor lines of credit from suppliers. This helps your startup conserve cash flow and obtain products and services it may need like office supplies, shipping, web marketing services and so on but defer the payments for a later date with no interest. Usually a net 30, 60 or even 90 day terms.

Some other viable options include social loans from companies like prosper.com and lendingclub.com

If you plan to obtain funding from friends and family (P2P Loans) than you may want to consider structuring a formal loan by using companies like Lending Karma or Lend Friend. It makes the whole process simple so you can formalize a loan agreement, calculate payments, track and record payments, and have automatic payment reminders sent.

Hope this helps you all!

All the best,

Marco

Start Building Business Credit

# 16 July 2010 at 1:49 pm
On Working Hard « Bootstrapper Handbook for Startups said:
[...] July 6, 2010 · Leave a Comment Work Hard! [...]

# 4 August 2010 at 9:32 pm
Customer Funded Business « Bootstrapper Handbook for Startups said:
[...] of the best method to bootstrap a business is to let your customers fund it. You can establish transaction with your customers to pay the service or products in advance, [...]

# 4 April 2011 at 6:21 am