When you start a new business, you need money ­to get it off the ground. You need the money to rent or purchase space for the business, furniture and equipment, supplies, professional fees such as legal and accounting, as well as continuing the research and development of your product or service. You may also need money to pay employees. There are several places where you can get themoney that a new business needs, but first you need to think about which type of funding will work best for your company.

 

Your Capital Needs

 

For each stage of your company's life, there may be financial needs that require outside funding. The funding types for the different stages are called:

• Seed capital - Seed capital is the money you need to do your initial research and planning for your business.

• Start-up capital - Start-up, orworking capital, is the funding that will help you pay for equipment, rent, supplies, etc., for the first year or so of operation.