How to raise money for starting up a business

Money is the bloodline of any business. Now, when would you require funding depends largely on the nature and type of the business. Here is a comprehensive guide that lists 10 funding options for startups that will help you raise capital for your business. Some of these funding options are for Indian business, however, similar alternatives are available in different countries.

How to raise money for starting up a business

Money 5 Best Ways for Funding a Startup With many new ways to raise money for start-up businesses these days, it can often be difficult to choose what type of funding is the right fit for you. Fortunately, understanding your different options is pretty simple. Getty Images For many, the decision about whether or not now is the right time to start a business comes down to funding.

How to raise money for starting up a business

There are quite a few different ways that you can go about funding a startup, but not all are created equal. One wrong move when it comes to finances and you could be back to square one. Below are the five best and most popular options for funding a startup: This is one of the newer ways of funding a startup that has just recently taken the world by storm.

Platforms like Kickstarter or Indiegogo are great examples of websites where you create a crowdfunding campaign.

How to raise money for starting up a business

Anyone can contribute money toward helping a business that they really believe in. Generally, those giving money will make online pledges with the promise of pre-buying the product, giving a donation, or earning some type of reward anything from a free notepad to a free iPod.

Keep in mind, however, that although crowdfunding campaigns may be trendy, there are hundreds of campaigns that go unfunded each year through this method. This is a competitive place to earn funding, so unless your business is absolutely rock solid and can gain the attention of the average consumers through just a description and some images online, you may not find crowdfunding to work for you in the end.

According to startup veteran Drew Hendricks"The most successful campaigns seem to come with a good story.

How to Raise Money to Start a Business

While most Entrepreneurs are inclined to highlight the product and hide in the background, on crowdfunding sites, the entrepreneur is the story. A venture capitalist investor is essentially a professional group that looks specifically for startups to fund. As you might imagine, this option has a lot of money available to offer to startups and plenty of resources to actually help your business succeed.

For many, a venture capitalist would be the ideal funding situation. However, there are a few major downsides to this option. For one, they typically look for larger opportunities that are a little bit more stable, meaning the company would need a strong team of people and a even few million dollars.

Angel investors work similarly to venture capitalists except they are much smaller operation, sometimes only one person. They oftentimes want a large portion of your company, meaning when you make money, they also make money for example, owning 49 percent of your company is not unheard of with an angel investor.

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Oftentimes the first place that entrepreneurs go when thinking about funding is the bank. There are many specialized options available for situations like small business ownership such as microloansbut your obstacle here is finding your way through such a tough lending period.

If this is the case, you may also want to consider a small business loan alternative from a provider like Express Capital where they specialize in these specific types of financing.

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.Find the latest business news on Wall Street, jobs and the economy, the housing market, personal finance and money investments and much more on ABC News.

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job market. Any entrepreneur will tell you that raising money can be the toughest part of starting your own business. While the competition for funds gradually increase each day, your chances of securing. 5 Best Ways for Funding a Startup Money With many new ways to raise money for start-up businesses these days, it can often be difficult to choose what type of funding is the right fit for you.

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