One of the prominent problems of start ups today is the issue of funding and staying financially stable in a business. As much as it’s possible to start on a zero capital, funding becomes very important or frustration is inevitable. Below are different tips that can be used to fund a startup:
- Personal Savings: No one is more passionate about your business like you. This usually comes in handy if you have thought about the idea for a long time and has been saving towards it.
- Friends & Family: This comes as gifts or loans. Remember not to feel entitled to other people’s money. Nobody owes you anything not even your parents.
- Angel investors: These are people that specialize in providing funds to businesses e.g. Venture Capitalists, High Net Worth individuals, NGOs.
- Bank loans: this should be based on you risk appetite. My advice is that these should be last resort. You must have worthy enough collateral though.
There are other tips that can be used but the highlighted are the trusted ways a business can be started up.