Entrepreneurs are full of great ideas and powerful ways to implement them, but like anything in life, starting a new business requires a hefty stack of cold, hard cash.
One question that comes in the mind of every entrepreneurs is “How to get money for business?” There are many options available for starting a business. If you have the urge to be an entrepreneur, we encourage you to think seriously and doesn’t get totally discouraged easily if those don’t work for you.
Here is a list of the 7 sources of funding with some rules of thumb to channel your focus:
- Fund your startup yourself
These days, the costs to start a business are at an all-time low, and over 90 percent of startups are self-funded. It may take a bit longer to save some money before you start and grow organically, but the advantage is that you don’t have to give up any equity or control. Your business is yours alone.
- Pitch your needs to friends and family
As a general rule, professional investors will expect that you have already have commitments from this source to show your credibility. If your friends and family don’t believe in you, don’t expect outsiders to jump in. This is the primary source of non-personal funds for very early-stage startups.
- Request a small-business grant from Govt
These are government funds allocated to support new technologies and important causes, such as education, medicine and social needs. The process is long, but it doesn’t cost you any equity.
- Start a crowdfunding campaign online
This newest source of funding, where anyone can participate per the JOBS Act, is exemplified by online sites such as Kickstarter. Here people make online pledges to your startup during a campaign, to pre-buy the product for later delivery, give donations or qualify for a reward, such as a T-shirt.
- Apply to local angel-investor groups
Most metropolitan areas have groups of local high-net-worth individuals interested in supporting startups, and willing to contribute in your startups. Use online and local networking to find ones that relate to your industry and passion.
- Negotiate an advance from a strategic partner or customer
Find a major customer, or a complimentary business, who sees such value in your idea that they are willing to give you an advance on royalty payments to complete your development.
- Seek a bank loan or credit-card line of credit
In general, this won’t happen for a new startup unless you have a good credit history or existing assets that you are willing to put at risk for collateral.
All these options require work and commitment on your part, so there is no magic or free money which you get for your startup.
If you need any consolation regarding issue occurred in running your Start Up, Send your query here: https://goo.gl/rPYc1e
“With the many options available, there is no excuse for not living your dream, rather than dreaming about living.”