Many entrepreneurs have launched their companies with a combination of formal and creative financing methods. Depending on how much money you need, you can seek venture capital from investors, borrow money from family and friends or seek credit to help or expand start your small business. In some cases, a credit card is all you need to get your business off the ground.
The first step in capitalizing a business is to determine how much you need. Creating a budget that includes first-year start-up and operating costs, or one that covers your expansion costs, will help you determine how much of your operations you can fund with revenues, and how much you'll need to borrow. Start-up costs include any money you need to run the business before you break even. This can include equipment purchases, materials, staff salaries, marketing dollars and office equipment and supplies. Including budget projections that show the long-term potential of the company, including when you will break even and when you will start making a profit, will help potential investors or lenders better see when they will get their money back and start making a profit.