What's the best way to raise money for my small business?

Question

Banks are usually wary of lending to small businesses, and I can't borrow from my not-very-rich family.

Answer 1

There are several ways you can raise money for your small business

Your Credit Card - not the cheapest, but one of the easiest sources of funds

Using Credit Cards to Finance Your Startup
http://www.entrepreneur.com/article/0,4621,290366,00.html
Credit Where Credit Is Due: Using Plastic to Finance Your Start-Up http://www.inc.com/articles/1999/08/16625.html

Your Family Members and Friends - maybe you can't borrow the entire amount, but they can help you in other ways such as their service or if you have a baby, watching over the baby while you work so you can save on child care expenses

Accepting Start-Up Capital from a Family Member: Good or Bad?
http://www.powerhomebiz.com/blog/2006/08/accepting-start-up-capital-from-family.html
Borrowing Startup Funds From Friends & Family http://www.entrepreneur.com/Your_Business/YB_Node/0,4507,159,00.html

Microloan program which provides loans up to $35,000 -
SBA Microloan Program http://www.sba.gov/financing/sbaloan/microloans.html
SBA Accredited Microloan Providers http://www.powerhomebiz.com/vol145/microloanproviders.htm

SBA Loan - not as easy and requires collateral, good credit history, knowledge of the business, etc.
http://www.sba.gov/financing

If you really cannot raise the capital you need, either downscale your plans and amount of capital needed; or wait until your financial situation improves.

Answer 2

Start smaller, and earn your way up!
Most small businesses fail within the first five years. IF you can borrow it will be at a high risk rate

Answer 3

FRIENDS AND FAMILY AS YOU ARE CORRECT THAT BANKS DO NOT LEND TO SMALL UNESTABLISEHED BUSINESSES .

Answer 4

Try asking help from your family first.

Answer 5

This is the same challenge I am head-on confronting.

Answer 6

Try www.prosper.com

Answer 7

Work harder and more of it!