How to fund a startup

It is no small thing to move forward with the decision to open your own business. It’s something that takes much thought and can take their life to the next level.

No matter how big or small the endeavor is, it’s more than likely you’ll need money to start the business. Where would be a good place to look for start-up cash? Here’s a few place you can find your (relative) pot of gold to start your business.

Your own cash

This method is a full-proof no-loan situation but it doesn’t mean it’s the best way to go. Sure, you won’t owe anyone anything, but if you go belly-up, you’ll lose all the money you invested with little to no chance of ever getting it back.

A small business loan

Only borrow what you’ll need, but enough to keep your business going for as long as you deem necessary. Make sure you have enough to not only live on but for any emergency that could occur while you’re running the business. It’s better to be prepared for the unexpected than to be stuck without any cash for an emergency.

Venture Capitalists

VCs are groups of people who have a lot of money and are willing to give an entrepreneur money to take their idea to the next level. Of course, that money isn’t exactly just given for “free”. Most VCs require that they be given a certain percentage of ownership in the company they’re investing in.

Crowd funding

Sign up for a “Go Fund Me” account! While it may seem to be that easy (and almost always isn’t), trying to generate donations online is another way of raising almost-free cash. Beware of the fees crowdfunding sites charge for collecting donations.

Credit Cards

This is the least advisable way to fund a business. You could charge items on a low-interest credit card, if your credit is good enough, in lieu of getting a high-interest rate loan.