There are lots of ways to start a business, even during a recession. What isn’t possible, unfortunately, is starting a business without spending any money. No matter what you might have heard, there is no way to start a business for free. Sure, there are businesses that cost very close to nothing to set up, but the face remains: Every business has at least some startup costs.
Unfortunately, affording all of the startup costs of a business – even one that costs very little to set up – can be difficult for some people to manage. Even when you scrimp, save and work hard to reduce your expenses you might need some help finding the funding you need. The good news is that there are lots of resources available for new businesses and entrepreneurs.
Credit Cards
It is going to take time for your business to build up credit of its own. In the meantime, you can use your own credit to help get your business going. Take some time to look over NerdWallet’s list of the best small business credit cards and get the one that best matches your needs. Make sure that you check out interest rates, annual fees and perks. Perks are especially important because they can help you earn things like frequent flier miles, money back, etc. All of them can help make your business expenses more affordable.
Silent Partners and Investors
If you have a really great idea you can take on investors. Even people who don’t incorporate can take on investors. Typically investors will lend you money to help get your business started in exchange for a share of the profits when you start making money or putting their names on your company in some way. They do not usually have a say in how you run the business.
Partners – silent and otherwise – invest their own money in the starting up of your company in exchange for having a seat at the table with regard to the decisions and choices that are made in the building of the business and the directions that it will take.
Grants and Loans
The US Government has a vested interest in helping as many entrepreneurs get their small businesses up and running as possible. The Small Business Administration has links and information on a plethora of loans that small business owners can get as well as information on foundations and other organizations that grant money to start ups and entrepreneurs. The great thing about a grant is that you don’t have to pay it back and they are rarely required to be reported as income on your taxes (though you’ll want to double check with your lawyer and accountant before you simply fail to claim them).
It might take some time to find the right funding source for you, your business and the paths you want to take to get up and running. What matters is not your final choice but that you keep working to find it.