Here are three more possibilities for accessing business start up money that you should check into if you're starting a business:
6) Participating in a government-sponsored business start up program.
If you qualify, this is the best way to start a business. Programs such as the Self-Employment Program (for unemployed Employment Insurance eligible individuals) and the Seed Capital ConneXion Program for Young Entrepreneurs (for young entrepreneurs in Atlantic Canada) not only provide start up money but invaluable assistance, such as mentoring and help developing your business plan. These are just two such start up programs; there are others.
7) Finding investors.
Angel investors, venture capitalists, or private lenders all may be excellent sources of business start up money for your new business. While it’s certainly more difficult in most cases to attract investors to a start up rather than to an established venture, it’s not impossible if you have the right business idea at the right time backed by an impressive business plan. See Prepare an Investor Ready Business Plan for more on tailoring your business plan to impress potential investors.8) Government grant programs.
While this is often touted as a great source of business start up money, it’s not, because most start ups simply don’t qualify as you'll see in The Truth About Small Business Grants in Canada. While there are government grants available, finding one that can provide start up money for your new business will be an enterprise in itself (which is probably why there are so many companies out there providing grant-finding services).
Those planning to start up “the right business” will have a much easier time finding government grant programs that may provide business start up money. For example, generating efficient, renewable energy is a priority of the federal government, so businesses involving Cogeneration (using one fuel to simultaneously produce heat and electricity) or renewable energy technologies will find more government grant opportunities than others. If you're interested in pursuing a grant as business start up money, 5 Tips for Finding Small Business Grants can help narrow your search.
Which of these sources of business start up money is best for you? Probably, like most of the people who have started businesses before you, you’ll need a combination of business start up money sources to get the money you need to develop your business. You may even want to explore all of these. Whatever you do, however, don’t depend on your personal credit cards for the business start up money you need. It’s best to wait to start your business until you have the funds you need in place rather than crippling your new business financially and perhaps ruining your personal credit rating.
