How to Collect Money for a Business

• Step 1

  Calculate your startup costs and try to minimize all possible expenditures. Start by drafting an outline of all your costs and split them into three categories: fundamental, additional and optional. Determine which things are required and then compute the sum. This is a crucial step in accounting and should be validated by quantitative information and substantive evidence. You want to be as efficient as possible, but more importantly you want others to notice your efficiency from this simple document.

• Step 2

  Research your local market and the viability of your product or service within your region. Refer to surveys, polls and background information on competitors. If you don't find that you can gather this information, you have one of two options: government counseling or pro-bono assistance. There are several government agencies dedicated to assisting small-business owners, these can be found through the secretary of state, U.S. Small Business Administration (SBA) or Buzgate.org.

• Step 3

  Contact local colleges to inquire about pro-bono assistance. Many schools require that business and marketing students undertake real-life projects in order to gain accreditation for a course. Use the advantage of marketing students to acquire a professional analysis of your business and the surrounding market.

• Step 4

  Document both your cost analysis and market research (above) and submit it with a proposal to a government agency for a business grant. There are several government agencies that readily accept proposals and hand out small stimulus grants. If you are not able to acquire a grant, seek a government micro-loans. Unlike regular loans, these are government-regulated, smaller and usually subsidized. Micro-loans can help you finance your small business by covering common startup costs (lease, utilities, supplies, etc.).

• Step 5

  Send a proposal to corporations with the documentation you obtained from your market analyses and research. Corporate grants are a great way to finance your small business. Emphasize the viability of your business and the public relations benefits that the corporation will reap if it helps your business. Corporations are very interested in handing out grants to small businesses because it helps boost their public image.

• Step 6

  Offer a share in your business. Some corporations are interested in receiving a share in the ownership of your business in return for financial backing, so this as an option. The advantage of a having a large-company interest in your business is that it adds credibility to your reputation and can ease loan approvals and certification processes.

• 4
• If you are can't get any grants, apply for a loan on your corporation. Banks consider corporations their own entities, and it is therefore easier to acquire a loan with lower rates and better terms.
• If you are can't get any grants, apply for a loan on your corporation. Banks consider corporations their own entities, and it is therefore easier to acquire a loan with lower rates and better terms.
• More than half of the small businesses in the United States fail within their first five years, according to the SBA. It is important that you understand the risk in small business and strive to cut costs at every level.
• More than half of the small businesses in the United States fail within their first five years, according to the SBA. It is important that you understand the risk in small business and strive to cut costs at every level.

References & Resources

• U.S. Small Business Administration
• Buzgate
• America's Small Business Development Center network