There are many ways you can do to fund your business. Many people who I’ve spoken with had been fortunate enough with getting funds from venture capitalists and began building their projects from there. If you’re wondering or clueless of where to look to finance your starting business, I’ll give you a quick list of what I accumulated that helped me look into, that hope it can help you as well.
- Bootstrap funding
- Crowd funding
- Family & friends
- Angel investors
- Venture capitalists
This list demonstrates the the options you have to finance your starting company, but me on the other hand, I find it difficult to see myself going to a venture capitalists or angel investor giving them my pitch of the company. You may ask why? Because I know I’m just a young guy with no experience owning a big company yet, asking for a certain amount of funds puts them at a much greater risk than one whose already create two or more businesses in the past. But I will keep in mind that having a great relationship with them can lead to great investment in the future. Banks? Nope, banks won’t do, I can for sure say they apply interests on their loans and you’d be lucky if they actually grant you one. Avoiding debt should be one of the things to keep in mind. Family and friends? I love my family and some friends may be so-so, but I’ve read about and witnessed this. The advice is that most of the time, doing this could result in conflict ending relationships with them. The only outcome I have as planned is bootstrapping my business.
What is bootstrap funding? In short words it’s personal money you’ve saved up. There are also several methods of bootstrap funding, but I personally have made the route of saving some income to accumulate it to a certain goal I made earlier this year. I find it complex because it’s the sweat and tears approach and I feel it takes longer than that of raising capital from investors. Yes I’ve heard the usual that you can start a business with up to a minimum of $350 cash, but what I’m willing to achieve is getting over that amount.
How do you come to this approach? What are your experiences with raising money to fund your business? Did you experience similar problems? How did you overcome this process?