Where should you get the money to fund your startup? Just because you have a great and exciting business idea does not mean that people are waiting to throw money at you.  

However, there are other creative ways to raise money for your new business, including:

Negotiating an advance from customers or partners

Look for a complimentary business or major customer who sees the value of your potential business and is willing to give you an advance that will enable you to finish your development. A variation of this theme is white-labeling agreement.  

Join a startup incubator

Associations like Y combinator are quite popular because they are associated with major community development organizations, large companies, and universities. They usually provide free resources to new businesses: consulting and office facilities. Moreover, others provide seed funding.

Apply to angel-investor groups

In most metropolitan areas, you will find groups with a high net worth that are willing to invest in startup businesses. They are usually willing to offer up to a million dollars to the startups that qualify. You should use online platforms to find angel investors who relate to your passion and industry.

Line of credit or bank loan

Generally, this is not an option for most startups unless you have assets that you are willing to put up for collateral or a good credit history. Moreover, you can get a loan from the SBA even if you lack the normal backup requirements.


You need to pay off your personal debts if you hope to qualify for any bank loan. Are you waist-deep in student debt? Make sure that you check out top student debt consolidation program reviews if you want to find the best way to turn your multiple payments into a single one.

Trade equity or startup help services

This involves bartering your skills for something you need. For instance, you can get free office space by agreeing to maintain computer networks for the other tenants. Moreover, you can exchange some of your equity for accounting and legal support.


Crowdfunding is one of the newer funding platforms that allow people from any part of the world to participate. You just need to make an online pledge and ask people to help you fund your business. Some crowdfunding sites are specifically made for business owners, which makes it easier for startups to get funding.


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To encourage complete strangers to help you, you should ask your family and friends to help you get started.

Request small business grants

The government allocates grants to support important causes as well as groundbreaking technologies. If you think that you qualify for a grant, start by looking at Grants.gov, where you will find thousands of federal grants. Although this process can be long and tiring, it will not cost you any equity.


To make sure that you get an answer in time, make sure that you apply for grants way before you decide to open your business.

Pitch to friends and family

Professional investors will expect you to have some funds from this source to illustrate your credibility. If your closest friends and family do not believe in you, why would a stranger believe in you? For most startups, family and friends are the source of non-personal funding.

Fund it yourself

Currently, the costs of starting your own business are relatively low.  Because of this, over ninety percent of startups are self-funded. Before your business starts growing organically, it will take some time to accumulate substantial savings.


For this reason, if you are funding your own business, you should set aside some money for personal use.



Founder and chief editor of makemoneyinlife.com Blogger, Affiliate Marketer, Tech and SEO geek. Started this blog in 2011 to help others learn how to work from home, make money online or anything related to business and finances. You can contact me at makemoneyinlife@gmail.com

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