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If you are hoping to open a business but do not have enough money or capital to fund it, then perhaps you would like to learn the business funding secrets used by other businessmen. There are specific types of funding for some groups, like minority owned business funding, and there some business loans that the government provides or subsidizes. But for many, such funding may not apply. In that case, private funding may be the best recourse.

Here are 5 Steps to getting funding for your business.

First, develop a Business Plan, as you will need it to get funding;

Second, identify how your business will benefit a would-be sponsor or partner;

Third, identify the people that the business will target. Would-be prospects for clients and customers are the foundation of any business.  Knowing your targets can affect the business planning as a whole, as well as identify the demand for the goods or services that your business may provide;

Fourth, emphasize to benefactors what they can get in exchange for providing the funding to start your business. It could be profit sharing, stocks or other offerings that sweeten the deal for potential partners and benefactors. Also, make sure that the roles of the decision-makers are identified according to the laws that govern the business, and that all matters agreed upon are in black and white with proper legal documentation and representation;

Last, always keep a good business relationship with the person or persons that are funding your business. Maintaining good connections (and forming new ones) are the ways by which your business can grow and discover new opportunities.