Are you wondering what are the most reliable ways to fund your business? There are many, many ways to fund a startup today. Which are the most reliable? Which are best for your venture
Starting a business requires money to be invested in it. It just does. It doesn’t always have to be a lot, but there will be expenses.
Plenty of fantastic startup successes have been launched on less than $10,000 like Peter Rahal. He recently sold his business for more than $600M. Some for less than $1,000. Others have raised millions in capital before they even really started.
There are many sources of money. Some can take longer than others. Some will require a lot more work and investment and time. Some are less likely to pay off in the short term. These are among the most reliable if you just want to get the money you need to start and hit the ground running fast and stay focused.
Self-Fund With Cash
If you have the money in the bank or under your mattress, you can self-fund your own startup. If you have limited capital you may have to bootstrap and run very lean.
Yet, there are many advantages to this as one of the most reliable ways to fund your business. Especially for launching and perfecting your business over the first year or two. It will enable you to retain all the equity and decision making power. You won’t have the burden of working on someone else’s timeline or repaying money in installments every month. It can make it even easier for you to raise VC level money later on.
You’ll be in a much better negotiating position and will be able to demand more money on better terms.
Your Personal Professional Network
If you already know VC partners and fund managers, this can be a very strong way to get started and distribute your business plan around. Some will just want to fund you because they like and believe in you.
The actual business idea is just a feature of that. Some will commit funds before you really get started. You may just have to provide a pitch deck so they can justify the investment to other decision-makers.
Friends & Family
When thinking about the most reliable ways to fund your business, friends, and family should be the first go-to stop for funding your startup. They already know, like and trust you. It’s the easiest group to pitch and sell. They should be the least demanding. They should be the most supportive when things are hard.
Don’t overlook this group or skip them just because you don’t think they have the money to write the size of the checks you want. You never know. You won’t know unless you ask. They may also have far better connections than you realize.
See How I Can Help You With Your Fundraising Efforts
- Fundraising Process : get guidance from A to Z.
- Materials : our team creates epic pitch decks and financial models
- Investor Access : connect with the right investors for your business and close them