Finding adequate sums of money for starting a business is the biggest hurdle you may face, unless you have deep pockets or some or the other kind of inherited wealth. It is impossible to start a new business without some startup capital because most businesses do not start making money immediately and there is no guarantee that the business will rake in enough money in its initial period, for you to live on.

Here are a few tips that will help you in getting you dream startup capital.

A Good Business Plan – You can raise money only if you know what you are going to do, what you are going to sell and the reason you are going to succeed in doing it. As a new businessman you need to write a business plan and define how you re going to use the funding if it’s made available to you.

Defining Your Options – You will need to make a list of all kinds of sources of funding that you can tap and they may include banks, credit cards, customers, government funding and even friends and family. Using family money is a good approach but your relatives and friend should be clear about the risks involved and should be willing to incur substantial losses if the circumstances arise.

The Right Investors – Try not to waste time with investors who just won’t invest in a business like yours. You need to find the right investors. You will find it difficult to find people who live several thousand miles away and would like to invest in your business and thus it makes sense to tap local investors. If you can’t find any, then you will need to move to a place where there are investors. Believe in your dream and you will succeed.

Progress And Feedback – There will be a lot of times when investors won’t readily invest in your project but will ask you to stay in touch and inform them about your progress. Do not consider it a “let down” and get back with them in a few months time if you have made progress or found a few big customers.

Feedbacks given by your investors on your business ideas need to be taken seriously. Be a smart entrepreneur and adapt quickly. It is advisable to have one partner who concentrates on fund raising while the other on improving the business.

Using Credit Cards – If you have good credit, using your credit card is the easiest way of getting at least a part of the capital needed for raising money. You can purchase equipment and other stuff on your credit card but be careful that you don’t run a huge credit card bill.

Besides these methods, you can start the business as a part time occupation in case you need to meet stringent financial obligations. It’s not advisable to quit your job unless your business is giving you a good flow of customers and profits.

You can also try to apply for business loans but remember that they are hard to get and the banks may turn you down because of their fear of lending money to startups.

Last but not the least, when you have become a successful business person, just remember the times when you needed a break! Once you’ve earned your millions, lend some money to a new entrepreneur, too.