Self-Financing a Small Business

There are many ways to finance a business. One of the most common ways to start a small business is to self-finance. Self-financing a small business can be the quickest root to if only requiring a limited amount of funds. Learn how to find the funds without other investors.

1. Start a part-time business and keep your regular job. You can turn the part-time endeavor into a full-time gig later with hard work. Let the business fund it self and have your regular job to pay for living expenses and the business can slowly gain finances on its own to make more of a investment. This can be a great way to start but expect to spend some money in the beginning to pay for needed equipment and marketing before business traffic takes off.

2. Step 2

   Using credit cards to fund start up costs is one of the most common ways small businesses get funding. However, the use of personal business cards for risky if the business never gets fully started or fails. Interest rates for some credit cards are high and can make starting a business even more costly. It is best to use credit cards to a minimal and use only when you know you can pay it at the end of the month.

3. Step 3

   Selling personal assets, like a extra car or jewelry that is no longer used can help with small start up costs. Depending on what you have laying around, it may not be enough to start a business on.

4. Step 4

   Grants, awards, and contests geared to help new business owners can help with start up costs, but again usually it will not cover all expenses required. Government grants can be found for non-profit and researched based businesses (see Resources below). Contests must be search for individually by keeping your eyes open to public announcements.

5. Step 5

   Personal loans can be use to start off a business if a individual has a good credit score and personal assets appropriate to the amount being borrowed. The Small Business Administration (see Resources below) provides information for a business's looking for a low interest rate loan to start up a business.