How to Get Funding to Start a Cleaning Business

March 3, 2010 by Steven Sutherland
Filed under: Advertising 

Startup costs for a small cleaning business are reasonable compared to other business models. But many entrepreneurs underestimate cleaning business startup costs which can still be considerable for a business that is wanting to start off properly and professionally.

Once costs have been forecasted you can then look at sources of funding so that you can get together the necessary startup capital for your new venture. For a well set up cleaning operation these costs are likely to range anywhere from a few thousand dollars up to around ten thousand dollars.

Let’s take a look at some of the sources of business funding that you may have available to you.

1) Fund it yourself. This is a good idea as it shouldn’t take you too long to save a few thousand dollars. Avoid going into debt if possible and consider delaying your business for six months or so if you need to save more.

2) Friends and Family. A small loan from someone close to you could be just the ticket but be careful that you don’t damage relationships by being slow to repay it.

3) Investors. While it is likely that you will be too small for venture capital funding you may know someone in your social network who would consider backing you financially. Be careful here though as they will probably want to have some input into management decisions and they may clash with your way of thinking.

4) Small Business Bank Loans. You will need to offer the bank some form of guarantee or collateral to qualify for credit line. You also may need to prove that you have a solid business plan and show a willingness to take on some of the risk yourself by at least providing some of the necessary funding.

5) Government loans and grants. Look into the opportunities offered by the Small Business Administration (SBA) and other government agencies. If you meet their criteria then you may qualify for a small business loan or grant.

6) Credit card financing. As a last resort, getting a cash advance on a credit card or multiple cards offers you quick access to funding when you need it. Risks with this option are high due to the interest rates that you will have to pay but if you are confident in your business plan and feel that you will be able to start paying back the debt within a reasonably short period of time then this option could work out well for you.

No matter which source of funding you decide to go with to get your small cleaning business off the ground just remember that every dollar counts and should be put towards the best possible use.

Author: Steven Sutherland
Article Source: EzineArticles.com
Provided by: Duty tariff

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