How To Fund Your Business/Startup


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You have a great business idea, and you are ready to get into business. However, there is only one problem; you do not have capital. And that’s where everything halts and the great idea goes to waste. It does not have to be that way. There are various ways through which you can get funding for your startup. Here’s a list of some

Angel investors

If you are a business person, then you have heard of this term at least ones, and maybe you are wondering what it means. Angel investors are individuals of high net worth who provide financial assistance to small startup businesses. In exchange, angel investors get returns or ownership equity. Depending on your agreement, the angel investor can put in a lump sum amount at the start of the business or continue until the company can take care of itself.

  • Venture Capitalists

This is another common reference that you could consider for funding. A capital venture is quite similar to an angel investor, except for the slight difference that while angel investors are individuals who use their own money to fund startups, venture capitalists are companies or businesses that invest in small businesses, but with a pooled investment from different investors and corporations. Also, unlike angel investors who are usually less involved in the proceedings of the business, venture capitalists are generally more involved and may sometimes take the first seat and have louder say in the decision-making process. Venture capitalists will work best if you have a well-promising business, or an already established one.

  • Crowdfunding

If you are not ready to share control of your business with other entities, then you can always opt for crowdfunding. This is basically raising small amounts of money from a large number of people, typically through the internet. This process can always be tricky, and it takes a lot of time, but it pays off, and the best part is that you still retain sole control of your business.

  • Family and friends

No matter how informal this may sound, family and friends can make very good funders. If the above ways do not work for you, you can consider turning to your friends and families. The good thing with this is that it does not require much processes and formalities, therefore making it very fast. Besides, you can make local arrangements on how to pay back the money without having to pass through a lot of procedures. Alternatively, depending on what you prefer, you can have that friend or family as a silent partner, as a repayment of the capital.

  • Loans

Direct loans from the bank is also a natural choice. You can get the loan in form of materials and equipment or the form of cash.

All these ways can work efficiently and help you fund your business; all you have to do is to have a perfect business plan.


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