How do I Raise Business Start up Money?

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  • Written By: N. Madison
  • Edited By: Jenn Walker
  • Last Modified Date: 25 March 2020
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There are many sources you may consider when you need to raise business start up money. You may, for example, use money you have in a savings account to fund your business and then ask family members and friends to invest in your venture. If your loved ones do not feel comfortable investing in your business, you may ask them to loan some of the money you need instead. Additionally, you may apply for grants and business loans and seek money from outside investors.

When you need to raise business start up money, your first step may be considering funding sources you already have. For example, if you have a savings account from which you can take start up money, you may be able to avoid taking on business loans. Likewise, if you have property you do not need or want, you may consider selling it for the purpose of raising start up cash.


You may also seek help from your friends and family members when you are in need of business start up cash. If you have a good business idea and your family members and friends have faith in your ability to make it work, they may be willing to invest in your new business. In such a case, you may offer to give them a percentage of your profits for a period of time in exchange for financial help with your business startup. Alternatively, some of your loved ones may lend the money instead.

Grant programs are another good source of business start up money. There are many programs that provide grants, which do not need to be repaid, to entrepreneurs. In most cases, you will need a good idea, a business plan, and a grant proposal to apply for a business grant. It is important to keep in mind, however, that you may face stiff competition when you apply for a business grant. As such, you may need to seek other ways of raising business start up money as well.

You may also consider seeking outside investors when you want to raise business start up money. Outside investors are those who invest in your business for profit rather than because of their relationship with you. In many cases, such investors may have more money available to commit to your business than friends and family members. It may, however, prove harder to convince outside investors to invest in your business venture. Additionally, you will likely have to give up a percentage of ownership of your company to secure this type of investment.

When you need to raise business start up money, you may also consider applying for business loans. In such a case, you will typically need good credit and an impressive business plan to raise the money you need. Some business lenders may request collateral as well.



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