Sunday, 1 January 2017

5 ways of Funding a Small Business

When it comes to starting your own small business, one of the challenging things is funding. Funding has been one of the biggest challenges for business owners and it is essentially required to enhance and let your business grow. Consider these as a guide while looking for small business funding in the following ways: 

Bootstrapping – Use your financial resources such as money from a savings account or careful use of personal credit cards.

Friends and Family – Consider inviting your family and friends to fund your business and promise them a share if the company makes a profit. These friends and family are investing in you and not your business and if the business succeeds then rewarding them would be a nice gesture.

Crowdfunding – Crowdfunding is an important aspect when it comes to the funding of the business. Many people opt for loans and funding from banks and financial institutions while they do not realize the potential of the public. Crowd funding or public investment is one of the safer options to go for while going to start your own business.

Angel investors – One of the most preferred modes of investments is the formula of angel investing. Affluent people who want to help people to come up with their business are called Angel investors. With the huge inflow of cash into the business, the results desired have a high rate too. Investors and owners have very high expectations and look for solid results.
Venture Capital/ Bank Loan – After the business has been set up and the current status comes down to being stable, the business now looks set for a long run. This is the mode where the company applies for a bank/financial institution loan where it has its plans of expanding its business. 

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