How do I get money to launch my business?

Answer:
Unless you have a great history of launching successful

businesses or you are buddies with some VC or Angel Investors then it's likely you will have to fund your business the old fashion way.

There are three recommendations I can make to help fund your business.

The first, easiest and most dangerous is by using your credit card. Incorporate your business and apply for an American Express (be sure to sign up for points). Typically, American Express has no preset spending limit. You can charge the essentials to getting your business up and running. Like any debt you must repay this one and as with most credit cards there are interest rates and penalties. American Express has higher penalties than most credit cards simply because they accept more risk and allow for higher spending limits. If your business plan calls for a return on investment the next month and your confident then by all means charge away.

The second way to receive funding for your business is through a loan. You can receive a small business loan from the SBA or apply for a business loan from a standard lender. Both will require an application however the SBA loan usually requires a business plan. Both are usually limited to six figures and depends on your credit history and a few other factors. If you need more than six figures then you will need to submit a plan to an Angel Investor or a Venture Capital firm. A s tandard business loan will usually yield a pretty high interest rate so be sure to only borrow what is needed. There are other loan outlets including a friend or family member.

The last and usually the best way to fund a business is to continue working or holding a paying job while working on your venture. Work in your spare time on the venture and eventually you'll have quite a bit of sweat equity as well as any saved funds available when needed. The more time you spend fine tuning your product or services the better. So have a gameplan, say you need $25,000 available to purchase inventory or hire help for the first 6 months of operations. If it takes you 1 year to save $25,000 spend that year fine tuning your business plan, analyzing competitors or building relationships.

It's always a good idea to have your forecasts and business plan in place before borrowing any money. You should be confident in your abilities and the liklihood of your success.