August 21, 2019
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Calculator and a spreadsheetIt would be so nice to just leave your job and start out on your own. You have some savings, and you have gotten a couple of friends interested in starting a business. Should you take the plunge?

Say you have finally arrived at the decision to go ahead and start a business: where will you get the money you need? Here are some suggestions.

Your own money

Many young or first-time entrepreneurs do things this way, by bootstrapping. Using your own money is one of the best ways to start a business. All of the advice here will keep coming back to this one because putting your money at risk may actually encourage other possible sources to risk their own money on you.

Your F&F network

Friends and family are the next best choice, but be careful. Even if you know people well or they are your relatives, that does not mean you are safe. If you do not hold up your end of the bargain, you will risk destroying relationships.

Borrow from friends and family, but offer a substantial interest after one year and put it all in writing. If your F&F know you have money riding on this too, they are more likely to lend you more.

Business lenders

Not all banks and financial institutions allow loans especially if you cannot secure them. However, you may still find a few offering good business lending deals, like firms such as TAB Bank. As with your F&F, they are likely to consider your application if they see you are using your own money too.


Many people say it used to be easier to attract angel investors. That is true. These days, angel investors and venture capitalists are more careful, and sometimes you need an “in” to even get close.

However, if you have your own money in the business, and have been working diligently, using a solid business plan that details your “out,” you may be able to get an investor interested.

When you get deep into business, you might find yourself using all of these and more, especially if you have learned how to handle money and pay back loans with interest, whether for starting, for manufacturing, for expansion, or what have you. 

Terohan Nula