Photo Credits: GangPlank HQ
Thinking about starting your own business and reading expert author guest posts for the same? One of the most important things you need to think about is how you’re going to finance it. While there are a lot of sources for startup capital, you really need to think carefully about which direction you go in so that you can maintain control of as much as your company as possible.
Ways to Finance a Startup
Here’s a look at several specific ways to finance your startup business – no matter what industry you’re in.
Angel Investors – One of the best ways to finance your startup is to find what’s known as an Angel Investor. These are people who generally have a lot of money and like investing in opportunities (and people) they think are going to succeed.
Bank Loans – Another option is to go to a bank or another financial institution and apply for a small business loan. You’re going to most likely need collateral – and a good business plan you can share with them – but this is a way a lot of people get their business up and going.
Credit Cards – This is NOT recommended for financing your startup, but if you know you’re going to be cashflow positive quickly, it can be a way to make sure your bills are getting paid on time and nothing is shut off.
Government Grant – Depending on your personal history and a number of other factors, you may find out that you’re eligible for a government grant. The US government routinely gives out money – that doesn’t need to be paid back – in order to help people start their own business. Make sure you read all the fine print before you apply for a grant to make sure you’re eligible before you waste your time filling out the grant proposal or other paperwork necessary.
Crowdfunding – This is a relatively new option, but one that works for some people. Basically, you list your business idea online and ask normal, everyday people to donate as much money as they can. You typically set a goal of how much money you’re going to need and then try to convince people to help you out. The amount you can raise this way varies, but in most cases it should be enough to get you started.
As you can see by looking at the list above, there are quite a few ways you can raise money once the Bank of Mom and Dad closes and won’t give you any more money. Triple F financing is nice, but Friends, Family and Fools aren’t always going to be around to help you out. It’s much better to take some time and investigate the various options available to you for raising money to start your business.
Jenny is working work as part time content writer at buy diesel company. She also write articles of tech, DIY, reputation management stuff. Other than writing articles, she manages a small store nearby her house.
Originally posted 2014-01-18 18:51:49.