Starting a Business? Where to Get the Money


A lot depends on the size and type of your business. Home-based businesses need a relatively small amount of money, while larger businesses in manufacturing, or retail require larger capital to get off the ground.

Here are a few places to go in search of start-up funding.

Partners can be a blessing and a curse. On the upside many hands make light work, and if you can find someone you can trust that has a whole bunch of skills, which are complementary to your own, then this may be a good way to share the financial burden. But, if you are only bringing in a partner for his, or her, money then you should take into consideration that you are giving that person a significant say in how your business operates how much will depend on the level of financial support, and the agreement you reach).
Whatever the circumstances, you will require a partnership agreement drawn up by a lawyer. Talk to your lawyer and accountant, but it is usually advisable to incorporate your business if you are going to have a partner, or partners. If you have issues later, it will make things a lot easier.

The other thing to remember is that it is all well and good getting a bunch of cash when you need it most, at the outset of your business, but what about sharing the profits down the road? The amount of money you thought was a godsend when you were struggling to get off the ground, may not seem much when compared to the potentially large sums of money going out of the business to a silent partner in dividend payments.

Grants – Don’t buy a grant book

The biggest message here is that there are almost no grants available to help you start a for-profit business. There are plenty of grant books available online that promise millions of dollars in available funding – they are not worth buying, for two reasons:

1) all the information is available through government sources for free, and

2) there is very little free money! Now, I have to qualify that last statement slightly by saying there are some government grants but they are for very specific types of businesses, doing very special and unique things. If you still want to check out whether there could possibly be a grant for your business, the best place to start looking is the Canada Business Network

Government grants and financing

Government departments and agencies provide financing such as grants, contributions, subsidies, and loan guarantees. Find out what type of government financing may be available for your business. Use the search tool or browse by type of financing.
Visit the government of Canada government grants and financing website:


Small business start-ups find it difficult to get loans from traditional sources. Don’t even consider approaching a bank unless you have an excellent personal credit rating and a first-class, professionally written, business plan. Even then, you will often find it difficult if you haven’t built up an excellent relationship with the bank.