Most new entrepreneurs use some of their own assets to get their business off the ground. In fact, many lenders and investors want to ensure that you have a personal stake in the success of your business, before agreeing to give you money.
Some of the types of personal assets that you can use to finance your business include:
- Money in your savings account
- Stocks, mutual funds, bonds or other investments (this can include your RRSP, but you will need to pay tax on any money that you withdraw)
- Personal property that you can sell
In addition to money, you can also put personal assets to work for the business. For example, you may not need to buy a new desk immediately, if you have an old one in your garage that you can use. You may be able to use your personal computer, printer, telephone and fax machine for the business. Or, if you don't have these assets yourself, you may be able to borrow them from family and friends until your revenues start coming in.