There are at least 10 ways to fund a new business, and a startup consultant in Phoenix named Martin Zwilling was good enough to put 10 of them together in a short post.
The first four are the basics:
- Self funding
- Friends and family
- Small business grants
- Loans or lines of credit
The next three involve investors and are most typically used by technology startups:
- Startup incubators
- Angel investors
- Venture capital
The last three are creative approaches that may work better for some business than others:
- Bartering services for equity
- Partner with beneficiary company
- Partner with a major customer
Don't be afraid to put together some combination of these, either serially or in parallel. In other words, some sources of funds may be more appropriate at different stages of your business, so you may use one early and others later. Be realistic about how much you can take on and how soon you'll be able to pay it back.
Hi Mary,
Great post on How to Fund your Business. Thank you for sharing the article
Cathy Curtis
Posted by: Cathy Curtis | May 30, 2009 at 05:04 PM