Every launch requires start-up capital to get it underway and to keep it afloat until profits can be achieved. If you did your homework and followed the business plan guidelines, you have a realistic idea of the financial needs. To bolster your chances of obtaining financing, or of being able to finance start-up yourself, do the following:

• Cut back on personal spending. Even if you have outside financing, you'll face emergencies or unexpected setbacks. Vacations or new cars probably won't be affordable for quite a long time, and you (and your children) may have to go without luxuries for a year or more.

• Clean up and manage your personal debt. You don't want to float two boats, so pay off all debts, or at least clean up your credit report so you can acquire loans, and manage your debt so you can sleep at night.

• Don't be afraid to borrow. If you've got a solid business plan, you will likely find investors or banks willing to loan you money. While you don't want to overburden your business or surrender ownership, borrowed money can work in your favor. Creditors can be more lenient toward owners carrying substantial loans; you can save your money for backup loans (and deduct the interest from your taxes); and you will probably make more objective decisions.

• Borrow only what you need to get underway. Ideally, you are funding the business solo, but if not, limit borrowing to start-up costs and minimize those costs wherever feasible. Once you have profitability, leverage it for loans.

• Hold onto your present job until the last minute. Expenses will escalate rapidly the minute you resign, and you'll most likely lose health benefits. Even though it's tempting, hold onto your current job until you absolutely have to quit.

Outside sources of financing include these:

• Friends/relatives: To maintain long-term relationships, address every conceivable concern and spell out the terms, conditions, and all repayment expectations in a written contract, including the amount, interest rate, payment expectations, lender's ownership or management expectations, what happens if a downturn prevents immediate payment, how long the loan can be extended, and what happens if the lender or loan recipient dies.

• Banks/lending institutions: These institutions are always in search of business propositions, but lenders require polished, professional, and complete business plans. They typically want a guarantee — such as your home — or a personal guarantor who can cover your loan if you default. They rarely offer more than 50 percent of the capital required, and you will have to jump through hoops to acquire the loan.

• Government loans or grants: Federal, state, and local governments may provide loans or other support, such as employee financing, rent-free locations, research or technology loans, free training, or grants. The Small Business Administration (SBA) is the prime place to research options (although they have stringent restrictions on financial assistance), but also explore government grants that may support women-owned businesses.

• Private investors: Typically private investors buy “stock” in your company, which means they purchase ownership equal to their investment.

• Venture capitalists: These investors prefer loans well above $50,000. Find them through accountants, banks, or local businesses development organizations (like the SBA). They will require extensive planning and typically require huge market potential, outstanding growth potential, proven management teams, and exit strategies. Between legal fees and management costs, you may end up paying 10 percent of the investment costs.

• Trade bartering: Sometimes you can convince suppliers to extend your payment requirements from 30 days to 45 or even 60 days without incurring additional costs. If you balance this “free” credit with an incentive to have your customers pay in 10 days, you may be able to bridge the gap and fund your business on their coattails.

• Seller financing: If you need equipment, you may be able to buy the equipment with no money down and no interest for the first year, which amounts to eleven months of free equipment. (You have to pay in the twelfth month to avoid interest charges.) Or you may be able to ask suppliers who will benefit from your business to finance equipment. Or better yet, buy used equipment and barter for financing.

According to The Unofficial Guide for Starting Your Small Business, the most common financing mistakes include the following:

• Starting off with insufficient funds

• Overestimating potential sales

• Not protecting your assets

• Taking on too much interest

• Failing to plan for growth

• Not preparing for temporary downturns

• Misunderstanding cash flow requirements

• Thinking that all you need is a lot of money

To make the most of government support, write to the U.S. Government Printing Office for a copy of the Catalog of Federal Domestic Assistance. (You can find their address in the front of your local telephone book.) It describes the types of loans available from various governmental agencies that support small businesses. It also includes the requirements for applying and what you can reasonably expect.