Funding Your First Business: What You Should Expect to Pay For

Brooke Chaplan

October 25, 2013


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Many people dream about starting their first business and with good reason. It can be rewarding and a way to do something you love. But there are many things to consider, much of them financial. When starting out you should have a good idea of what you will need to pay for and how.

Grants

The U.S. Federal government has grants available for some applicants. The database is easily search-able. You may be able to find state grants, depending on the state where you're intending to start the business. There are also non-profits that offer private grants that you may be able to apply for.

Loans

Loans, unlike grants, require being paid back to the individual or organization that provide them. The most common place to apply for a loan is a bank. There are also non-profits that offer them as well. If you are lacking in credit, or are otherwise having trouble finding this sort of financing, organizations like the United States Small Business Administration offer programs that may help.

The Location

Obviously your business will need a place to run operations. Figure out how much space your business will need. Can you run the day-to-day operations from your home? If not, do some research online and track down a reputable real estate agent. You will need to find out how much equipment and storage you will have to use as well.

Inventory

Another important thing to consider is what and how much you will be selling to start out. The numbers you come up with to do not have to be exact. Close guesses are fine. One good potential money-saving option is to buy your inventory wholesale. Also be sure to keep in mind the costs of shipping if you aren't buying locally.

Technology

Up-to-date or at least very recent technology is important. Recent computers do not have to cost a fortune. There are retailers online, and in brick-and-mortar locations that sell used and refurbished computers. In certain cities, there are non-profits that provide refurbished computers at a relatively inexpensive price as well. Another important expense would be software. You might find it useful to invest in something like Domo BI software, something specifically meant to help you run your business.

The process of starting your first business is one that will cost you time and money. But it does not have to cost you your sanity. If you are looking for further information, it is available from sources like the aforementioned United States Small Business Administration and companies that can help small businesses just starting out. Use your resources to figure out how to best finance your business.