Summary: With funds becoming the core of the competency, the small businesses can acquire the funding from the following sources.
Without proper finances you cannot start a business. For most of the individuals starting a business coms with a lot of challenges. If you go back in the history and find out about the birth of Android, you will understand how tough it is to get started with your dream business. In the story of Android, Andy Rubin started with a very limited budget borrowing money from a friend but today it is something which is present on every phone. For Rubin, a short mid-night idea has now become a billion dollar baby. For most of the starters figuring out the business finances is all about struggling with the time and help. But not anymore, in this piece you will come to know about the ways with which you can instantly fund your business.
Get Help from Friends and Families
The best way to start with your business venture is to take the help from friends and families. If you have been thinking about taking the loan from bank, you must reckon this fact that 77% of the startups have been built on personal loans from families and friends. With your own personal savings and help from friends and families at a lower rate of interest, you can start the business without any struggle. In most cases even the interest can be waived off by the near and dear ones. This is a tested method with which you can proceed.
Use of Credit Cards and Personal Loans
It is always not very much advisable to hook with your credit cards owing to the burden it has put on the US economy, but when you are left with no other alternatives, going for the credit cards or personal loans can help you in a big way. There is also provision for entrepreneur funds from which the entrepreneurs can pay the bank after their retirement. These options can instantly help you kick-start your business proposition.
Small Business Loans
In most countries the start-up ideas have been appreciated and acknowledged. Those countries are promoting the startups with instant loan funding. These kind of funding is most prevalent in the developed countries like India and China. As a business owner, if you wish to start up a small business and wish for quick funding, these governments can help you since it helps in the job generation.
This is also one of the alternative with which you can proceed. With the partners, you can share both the risks and gains. Partner funding is the most common form of business investment and most of the businesses have been flourishing on this concept.
Angel investors are a hard bargain and they will be ready to invest in a business only if they have found out that the idea is grand. In return they will demand equity from the returns you will get in the business. Angel investors will not be interested with small projects and you must take note of that they will invest money only if you have been making some apps or doing something spectacular which can disrupt the norms of the market.