You've got an idea and want to make a business out of it.

One of the first hurdles you'll face is where to get funding from.

Whether it's a groundbreaking dot.com or a village bakery, you'll need money to get it off the ground.

Of course, it depends how much capital you want to raise.

If you're looking for a million or two, you'll need to head straight for the City - and it had better be the biggest idea since sliced bread.

If your requirements are more modest, you could look nearer home.

Friends and family

Start with your own bank account or savings. It reduces red tape and there are no strings.

But if things don't work out you could end up skint.

If you don't have enough on your own, you could ask friends and family to invest. They might want a stake in your business - it's really up to you how you decide to repay them.

Obviously the man who lent Anita Roddick �4,000 in return for one-quarter of Body Shop has been delighted with his investment!

For 70% of small businesses, the bank is the place they get start-up cash.

Do your homework

However, the loan will probably be secured, so your home could ultimately be at risk.

For a list of the main High Street banks' websites, click here - you'll find that some are more geared up to specific areas such as technology than others.

But make sure you've done your homework first.

"Banks will want it to be a fairly safe bet," says George Whitehead of Oxford Innovation, who secures funding for start-ups.

Even if you think banks won't touch you, help could still be available.

TheSmall Firms Loan Guarantee Scheme is a government programme which enables selected banks to finance ideas which might not normally qualify because of a lack of security or a track record.

Loans of between �5,000 and �100,000 are available. And up to �250,000 if your business has been trading for more than two years. The government's Small Business Service guarantees 75% of the loan.

The scheme is open to companies with an annual turnover of up to �3m, or �5m if you are a manufacturer.

Most businesses qualify, although there are some exceptions. Ask if your bank is involved with the scheme.

Private investors

If you've still not found funding - or you're looking for a large sum of money, perhaps more than �100,000 - you might want to try private investors.

There are lots of companies and individuals willing to back a likely prospect.

Try the website of the British Venture Capital Association (BVCA), which is the representative body for the UK private equity industry.

Most private equity companies are looking to invest in established firms which are growing or to back management buyouts, but some will support start-ups.

Good return

In 2000, 60% of companies backed received sums of less than �1m.

But these investors will want a good return on their money.

"A dot.com has the potential to make millions," says George Whitehead of Oxford Innovation. "Something like a baker's shop would not interest them."

In fact, there are investment groups, often locally based, which specialise in technology businesses - examples include Oxfordshire Investment Opportunity Network and City Technology Investment Network.

If you want to follow the venture capital route, some of the big accounting fims such as PricewaterhouseCoopers have investment arms.

Business angels

Or you could try websites such as www.venturedome.com.

An alternative source of private investment could be the National Business Angels Network. These investors tend to deal in smaller sums and are often more kindly disposed towards start-ups.

There's even an annual event called Venturefest, which brings together new businesses and potential investors for both formal discussions and networking.

Fashionable

Business funding did dip after 11 September, but investors, having seen the value of their shares gradually rise again, and getting back into action.

"Things are picking up at the moment," says George Whitehead. "It's becoming more fashionable to go back into technology."

But he stresses the importance of preparation. Your idea needs to be clearly defined, your business plan thoroughly worked out.

"You have to be a bit of a salesman to sell a chunk of your company to investors," he advises.

Grant funding

Another area of funding is grants. You might find you are eligible because of the type of business you are setting up, your age or where you live.

The Prince's Trust was set up in 1983 to help 18-30 year-olds start their own businesses. As well as cash, it can provide other support and advice for entrepreneurs in England, Wales and Northern Ireland.

In Scotland, the Prince's Scottish Youth Business Trust performs a similar function for 18-25 year-olds.

Another long-running scheme is Shell LiveWIRE, which promotes enterprise among those aged between 16 and 30. Its aim is to encourage young people to see starting their own business as a viable career option.

Disadvantaged

The Phoenix Fund is aimed at encouraging entrepreneurship in disadvantaged areas, where a shortage of jobs, services and enterprise can hinder start-ups.

The National Endowment for Science, Technology & the Arts (Nesta) was set up with �200m of National Lottery money.

It uses the interest - about �10m a year - and focuses on people with ideas rather than organisations.

Money's not everything, though. One of the first places you should turn when starting out is your local Business Link. There are 45 across England offering help and advice on all aspects of getting a business off the ground.

If you're looking for expert help, you could try a website such as www.e-lance.com, where you post details of your requirements - such as a web designer - and people bid to take on the work.

Incubator units

You might want to consider an incubator unit, also known as innovation centres or business accelerators.

These companies take your idea and nurture it with time, money and advice. You're likely to share accommodation with other people in a similar position.

Oxford Innovation runs several centres. But check to see that what the unit offers matches your needs.

Business school

If you're already qualified or working as an engineer, you could apply for a grant from the Sainsbury Management Fellowship.

Each year the SMF sends about 10 young engineers to a top business school to learn management skills. Many have gone on to run their own businesses.

There's lots of information out there. You'll find various new business magazines in bigger newsagents, or you can try websites such as www.startups.co.uk.

Good luck!