Depending upon the size and type of your business venture you may not need any money to start simply because you need little in the way of supplies and it really depends upon your own skills rather than a large capital funding. You may just turn your basement or spare bedroom into your office, submit ads for your services, and operate on a shoestring budget as you build your client base.

That would be nice, but in reality there are few businesses that need no money to get started. Even the most basic office would need to pay for phone service, setting up a Web site, advertising, and equipment such as a fax machine and printer.

Many people do start up a small business by doing freelance work on the side while keeping their day jobs, by using some of their savings, or they get free help from relatives and friends.

When your small business really requires a lot of resources to get started then getting the money you need can be more difficult. Many banks, especially now days, are not interested in investing in a small business. The risk reward is to great. They're looking for a more sound and profitable area to invest in. It has been said that it is easier to borrow one million dollars than it is to borrow ten thousand dollars.

That is not to say you should skip banks or credit unions all together. If you only need a small loan then you may be able
to borrow the money but you'll need a bullet proof business plan or you will have to put up collateral such as your house.

Another possibility is that you can raise cash through other methods such as grants and small business loans from the government. An accountant can give you some business advice and many be willing to consult with you for free initially, with the hope that you may use them down the road.

Another source is venture capitalists and individual investors are looking for solid business ideas to invest in. If you have a solid business plan many of these investors are retired business owners that want to give back in the form of financial backing and business expertise. They will assess your business plan and actually help you get through the growing pains - and can be a great resource.

As mentioned previously in order to get assistance you'll need a solid business plan. It needs to describe your ideas with projections for how the business will grow. You need to do market research to prove that the idea is sound, and that there is a sustainable market exists for your product as well as a lack of overriding competition. If your area of the market is already crowded, the people with the experience will probably be able to keep you from competing unless you have a very good twist on the product or service. And with already being established they can make changes quickly and may be able to hold you off from gaining a foothold. That is why your business plan should reflect your market research, your marketing plans, and your ideal location for your small business. Getting a professional to help with this will save you from potentially wasting
a lot of time and money!

As noted above most people, banks, institutions willing to loan you business funding will want a personal guarantee from you about how much money you're putting up yourself and even possibly to secure there entire investment. Don't ever give a personal guarantee for a business loan if you can help it.

Get creative and fine other funding sources unless it is a last resort. Even if you are an LLC or Inc. you still can have liability for debts. If need be, start small with what you can afford. Don't put yourself in the position where you may lose your home and leave your family without a place to live. You need to be able to answer these questions, "What will the Impact be if the Business Fails?" "Can I Afford to Start Over with Nothing?" - because businesses fail everyday and you are not immune no matter how good a plan you think you have.