You’ve got a great idea for a business, but you need to get funding to turn it into a reality. Where do you go? It may be difficult for new and developing entrepreneurs to generate the capital they need. But, it’s not impossible. You need to know where to look.

In an ideal world, every entrepreneur would have a wealthy backer. Your benefactor could write you a big check, and you’d never need to worry about money again. That’s not going to happen, so you have to keep looking for capital.

Your basic capital is where you turn to first

If you want to start a small business, you need to look for basic capital first. Your own resources are the easiest way to get started. You have two options: savings and equity in your home.

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Many people start businesses with money they have set aside in savings. You can’t use your savings for this purpose, but you can tap into them. But, you should keep a little cash sitting in your bank account as a safety net.

You can also use the equity in your home. This is the biggest thing you have. You have to own it outright or have a mortgage payment that represents a small portion of the value of the home. Of course, you don’t want to put your home at risk. You can use the equity in a home to help fund a business, but you have to use it wisely.

If you don’t have savings or equity, your next best bet is family and friends

If you don’t have your own resources, the next best thing is help from family and friends. This may be a difficult option, but it’s there. You can’t expect your family and friends to pay for everything. But, they might be able to help you get started. You can point them to and have them read why it’s the best time to invest in a small business.

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You have to be careful with family and friends. There is a lot of potential for problems here. You don’t want family members or friends to think you are taking advantage of them. You want to be a nice person who is upfront about what you need and how you’re going to pay for it.

The last thing you want to do is finance your business using credit cards

The reason why you don’t want to use credit cards is that the interest is so high. You can end up paying more money in interest than you would if you just used savings. If you don’t have savings, you may not be able to pay the minimum payment each month. You could end up in debt, which is a bad thing.