There is an old saying: “It takes money to make money” and this statement is very true.  All new businesses need funding.   Think about it.  You will need money to create your business image, logo, and marketing materials.  You will need money to develop your product or service.  You may even need money for buildings, machines, equipment or professional assistance.   So, unless you are already a millionaire, then you probably need to find some funding.

First and foremost, you should look to yourself as the primary source of money for your business.  You may have more money than you think.  Here are some examples of personal money sources:

• Sellable Assets (i.e. cars, property, etc.)
• Home Equity
• Savings Accounts
• Retirement Plans

If you cannot cover the costs of starting up your business on your own, then you will need to look to other sources.  Here are some examples of secondary money sources.  

• Loans (i.e. from banks, credit unions, etc.)
• Loans or Grants from Government (i.e. Small Business Association, etc.)
• Private Investors

These secondary sources should be able to handle all of your financial needs.  However, there is a third and final option for finding funding.  The final sources are:

• Family
• Friends

If you are wise, you will consider these sources only as your very last choice.  There is a reason why you have probably heard, “never do business with friends and family.”  Be careful.  If you do have to go to your friends and family, then it is best to ask for the funds as a gift or investment instead of a loan.  Nothing can ruin Thanksgiving dinner faster than sitting across from someone who’s mad at you because you still owe him or her money.