In order to run a business, you need capital; you need it to convert a good idea into profit. Luckily, there can be a wide array of ways to finance a business start up. But, when it comes to choosing the right option, it can turn out to be a very difficult task. Always remember, one of the most common reasons why most businesses fail is limited or inadequate financing. It also means that the biggest mistakes you can commit in this regard come from miscalculating the amount of money you need, choosing the wrong type of financing, and underestimating the cost of financing during the start up process.