You have a great idea, the perfect location picked out, and you know you can make a lot of money from it, but how do you get a business loan to start your small business? Millions of people take the leap to become an entrepreneur and obtain the American dream. Before you do make sure you have everything in order — most importantly your finances.

While there are big profit potentials available by running your own business that could never be obtained as an employee, there are also some big risks. Particularly when starting out, things can be tough. Not only may you have to fore go your income, but there are expenses. So instead of making money like you are now, you are not only making $0, but you have start-up expenses.

Everyday people are able to successfully make this transition with the help of obtaining a small business loan. While some business may allow you to work part-time while you keep your day job, that’s not always the case. Even then, if you plan to start a brick-and-mortar business, you will have many thousands of dollars in expenses. If you are starting a home-based business, such as a consulting firm, you may be able to get away with high overhead and start-up costs.

If you’ve sat down and done the math, you know exactly how much savings and personal credit is available and how far that will take you. Maybe you’ve even thought about a home equity loan or line of credit in order to help you get to profitability. Whatever the case, there’s a good chance you’ll need additional financing for expenses you have yet to consider.

• Business licenses
• Legal Fees
• Advertising
• Payroll
• Website Development

These things may seems like minor expenses, but they all quickly add up to big bills at the end of the month. That’s where your small business loan or additional financing resources can help you.

One place to start is the obvious. Check with the bank you currently do business with. Banks like Chase and Bank of America have great programs for small businesses and can help you keep your expenses low. They will probably be happy to extend an initial line of credit to you in the form of a credit card. While this may not be much, you’ll want to use it responsibly in order to start building business credit as soon as possible.

Other than your bank, you can try approaching private investors (known as angels), who may be able to provide you with the financing you need for something in exchange. Generally they’ll want to thoroughly review your business plan and want some stake in ownership of your business.

Beyond your local bank, angels and your family & friends, you can also contact the SBA for information on other resources that may be available to you. They often provide a number of financial assistance programs, or can direct you to the organization that can.

Lastly, one option that many new business owners fail to recognize is the availability of small business grants. These are government and privately run programs that provide money to new and existing small business owners. Because of the positive economic affect it can have, there are many organizations that will provide financial assistance to individuals that have a sound business plan and potential for profitability. In the long run that means more tax income for your state, more competition, more jobs, and an ability for your community to attract more businesses. By partnering with the various grant programs that are available, a win-win situation can be achieved.