6 Ways to Raise Capital and Start a Business

Raising capital to start a new business is not as easy as setting up a lemonade stand or selling Girl Scout cookies. A primary reason for the failure of start-ups is a lack of funding. There are plenty of great products and ideas that have never come close to making it to the public.

Without American entrepreneurship, and the drive to just go for it, we would not have Apple, Google, Facebook, Starbucks, or countless other companies that are a part of our everyday lives.

Here are six ways to generate capital for your business in today's economy:

1. Friends and Family

A tried and true methodology, this has been a staple of start-up funding for hundreds of years. It is however, not without its risks, as a failed business could lead to strained relationships. Or even the end of relationships.

2. SBA Express

The Small Business Association provides several avenues for borrowing money. SBA Express allows bank-qualified business owners to borrow up to $150,000 without filing the typical SBA loan application. Plus, owners will receive a loan decision within 36 hours.

3. Community Banks

Community banks actually have the capacity to be flexible with lending terms whereas large corporate banks do not. Find local lenders by reaching out to the Independent Bankers Association of America, which has access to 5,000 community banks.

4. Crowd Funding

Crowd funding networks like Kick starter and Indigo have raised some serious cash from individual investors. If you have an innovative idea or project, develop a reasonable funding goal and timeline and see which investors support you and pledge funding. Remember, projects must meet their funding goals before the time runs out, or else no actual money is received. Also, be aware that a percentage of the money raised will be kept by the crowd funding site as part of their fees.

5. DPOUSA

DPOUSA is an online financial platform providing client companies the opportunity to have 24 hours a day, 7 days a week, 365 days a year visibility of a direct public offering to a growing base of over 33,000 accredited investors and institutions representing over $500 billion in available capital. Unique to DPOUSA is the DPOUSA Special Council, a diverse cross-section of 50 professionals from various industries available to assist DPOUSA client companies. Visit www.dpousa.com for more information.

6. Bank Funding

A small business loan from a bank is a traditional way to get money for your start up or planning company. The bank carefully review your credit score in the person, now with your business plan is really to determine how it will generate revenue - allow, and in order to repay the loan. Then he returned little to pay interest on the loan. Each one focusing on the cost of the interest is the annual interest customers show what the things for the most part.

Conclusion

Whatever the state of the economy, there will be those willing to invest in new businesses. New businesses create jobs, and power growth. There are sources to help with capital. So, once you find the sources, be ready with a great plan to show what you are going to do with the capital, and how the investor will benefit.

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