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5 Ways To Fund Your Startup

5 Ways To Fund Your Startup

You have an idea, but you do not yet have a business. Indeed, it may seem like a long and almost impossible journey to establishing a startup. But this need not be the case. In fact, there are many ways you can raise the capital you need to open your own business.

Becoming an entrepreneur is not as hard as it used to be. First, there is not the pressure to become an overnight success. It is generally understood that most new businesses must operate for months, sometimes years, without seeing a profit. This means you will have the freedom to experiment, falter, and correct yourself without undue pressure from peers and financiers.

Second, the number of funding sources is much greater than before. There is the standard venture capitalist, which consists of a professional group of money men who are on the look-out for particular kinds of startups and to make particular kinds of funding deals. There is also crowdfunding, which has become all the rage recently. Funding through this method requires you to target a specific audience and build a public campaign designed to get money from them. Angel investors are very much like venture capitalists, but they tend to be smaller and more flexible in the funding arrangements they are willing to make.

Then there is the option of going into debt. This is not talked about as much, but it can be made to work. Inc. magazine has an article that discusses the pros and cons of taking out a small business loan or using a credit card to fund your startup.

I especially like what it says about using credit cards:

If you have an excellent credit history, you may be able to use that to help you use a line of credit to fund your startup. There are specific credit cards designed for entrepreneurs, so visit your bank and talk about some of your options. This is definitely the riskiest option on the list, but if you can make it work, it can likely offer you the best results from the perspective of having –full control and full ownership of your company.

The whole of the article can be read here. ?Many entrepreneurs have made a success of their business by using credit cards in the early phases. Depending on the nature and scope of your company, this may be a good option.

The bottom line is this. Whatever your business idea, you should know that there are many ways to make it a reality. The five options mentioned above have worked for most aspiring entrepreneurs.

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About Christopher Reid Chris was born in Washington, D.C. and lives in Britain. He works as a blogger, essayist, and novelist. His first book, Tea with Maureen, has just been published.

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