Forget about grants - they just don't work that way and you will only be wasting your time and money pursuing them. Loans are not a bad thing if used properly. Loans are termed leverage. The idea is simple: You take a loan that costs you X amount (principal and interest). You use those funds (leverage) to generate more in revenue than the loan costs. Other options are trying to find investment. This could be from friends and family or by getting out in your community and networking to see if others are willing to invest in you and your prospects.

Questions moved to Filing and Paying Taxes

I like that idea of having buyers early on to gain quick capital..never thought of that

wiseath, The government doesn't usually give grants for starting a business. If you need $5000, you may want to look into getting some investments from friends and family. How quickly do you feel you will get the $5000 back? Another thing people are doing now is to try to secure some sales before opening up shop. This way if you go to get a loan, you have proof you will be able to pay it back fairly quickly. JimD

Well iv'e noticed that the government is very stingy with grants..I would like to have at least $5,000 to begin with, that would be my ideal begininng of capital.

wiseath, Grants are difficult to come by. The federal government gives out grants only for specific purposes. Take a look at the Ultimate Guide to Financing to check out other options if you are trying to avoid a loan. How much money are you looking for to start your business? JimD

It is very indivdual decision to make and the question how smart it is can vary between one business and another. I guess the simplest way to see it is to calculate and estimate the business growth and business earnings with the loan and if its worth it.