If you are trying to figure out how to pay the initial costs of starting a new small business, then you may find yourself a little unsure of where to start.  Don’t feel bad.  This is a common problem faced by the founders of most small companies.  Unless you have saved enough money to pay for it all out of pocket, you are going to have to seek the funds elsewhere.  The good news, though, is that you do have options.

Go to the Bank This is where most people start, but that doesn’t mean that it is your best option.  If you are going to opt for bank financing – for the full amount or some portion of it – be sure you do your homework.  Don’t sign on the line with the first bank that you talk to.  There are some that will offer special programs for small businesses.  Others will have specials on small business loans during certain times of the years.  And, there is always a slight variation in the terms of the loan, including interest rate.  Needless to say, it is a good idea to talk to several before deciding on the best fit for you.

Find a Partner If you don’t really want to get the loan through the bank, because the interest rate is really high or because the payment plan is going to provide too little time for the company to start turning a profit, then you might want to consider finding a private investor.  Of course, if you are a new business owner with little experience in the field, you may find it difficult to find someone willing to front you the money.  This is why so many small companies are owned by partnerships.  This gives the investor a lot of say in the financial decisions made, and gives you the money you need to get things rolling.  If may even be possible to meet your future business partner at an invention seminar, but we’ll discuss that more below.

Consider Crowdfunding The crowdfunding sites are a lot busier than they once were, but that doesn’t mean that you can’t raise money in this way.  It will take a bit of marketing expertise to get word out there, in order to find the people willing to invest in your idea.  However, you’ll need those same skills to market your products or services anyway, so this is a great way to raise funds and get a bit of practice.

iFestival Above, we mentioned that you may be able to meet your future business partner at a high tech seminar.  It is true that events like the iFestival are often responsible for bringing investors and innovators together.  If you have a great idea, it is worth considering bringing it to an idemonstration, where investors come to find the next big thing.  Some are looking to invest in the future of pet health, while others prefer health & technology, but you can be sure that the I festival has room for nearly every industry to be represented.