There are numerous career options available for both women and men now a days and that does not mean only regular jobs. There is a section of people who want to break free from the limitations of regular jobs. For them, starting a venture is the right option. However, the way to becoming a successful entrepreneur is not smooth. There are hurdles, risk and even insecurities that you have to battle and overcome to succeed in this way.The biggest hurdle in starting your own venture is money. Without adequate funding you cannot get started and expand as and when required.
Below listed are the top options that you can utilize to fund your startup, regardless of the niche. Not all options are easy to avail and some come with their own drawbacks. You may have to make use of more than one option to get fudging as well:
1. Personal Funds
Nearly every entrepreneur has to make use of this funding option. You may use saved money or even a part of savings to begin a venture. Of course, it also needs to be seen how much investment you need to start a venture. This varies from one instance to another. Some entrepreneurs began with saved money and they had saved with a purpose. That may not be the case with all entrepreneurs.
2. Borrowing From Family/Friends
It is not a nice option for some, but there are instances of iconic entrepreneurs who started by borrowing from their closed ones. Of course, you need to think of a lot of factors before borrowing from close ones to invest in your startup.
3. Bank Loans
You can seek bank loans to start a venture. However, the process is not always smooth and based on the region and loan norms, you may have to produce a collateral like a property. The bank will also assess your credit record well before issuing a personal or business loan. Overall, applying for a bank loan and getting clearance can be time consuming and it often involves extensive documentation.
4. Credit Cards
Yes, using credit cards can prove to be a double edged sword, but you also get access to the funds faster than other options when you opt for it! It is natural that in the first stage, the venture will not fetch much profit and you will still need cash flow to keep things going. A credit card makes this simpler. However, you need to be quite careful when choosing credit cards as not all of them offer the same benefits. A credit card with low APR can be more suitable than a cash back type.
5. Private Investors
Getting funds from the private investors can be tricky, but then there are examples of entrepreneurs who have struck the bull’s eye in this regard! Private investors like venture capital firms offer funding to startups in specific niches. They may offer funding with certain conditions and you need to evaluate these to understand if the offer is worthwhile or not. Sometimes, the firms may want a stake in the company in exchange of the funds they offer.
6. Other Options
Based on the niche of your startup, you may be eligible for getting government grants in some regions. This can be applicable when your venture deals with sustainable energy, Eco-friendly causes or recycling etc. Nowadays, a lot of would be entrepreneurs are also opting for a method called crowd funding. This method basically leverages on the reach of the web and social media circles to gather funds from interested investors. You will find lots of resources on this online.