|Sources of finance: Using your own money
You will normally always have to use some of your own money when you start a business - but if you can cover all your start-up costs on your own, this will make life much simpler for you. If you own a house, you may be able to borrow money back from what you've paid in. Many people borrow money from the bank by using their house as security. (While this is a common practice, you need to be aware of the risks - it means that if your business fails badly, you might not only lose your income but your house as well!)
Starting a business with just your own money may mean that you are often strapped for cash, but weigh this up against the advantages of being free to make your own decisions. If it looks like your initial business plan will cost more than you have available, try another approach. Use the tips above to explore ways of reducing your initial costs.