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Top 10 Ways to Find Funding

Creating a strategy for funding is the key part of any business. A business owes its genesis to the initial funding that it receives. Entrepreneurs might perceive funding as the most difficult screening process of a business. Luckily, there are multiple sources and ways to find funding for your business. The information will be able to save you much time and energy. We have provided the top ten ways to achieve this.

Self-Funding - Self aids from your own savings is the most preferred source of funding for a business. If you have enough money, self funding should not be a problem. This would obviously save you the trouble of looking for other alternatives of accumulating money for the business.  

Business Angels - As the name suggests, there are wealthy people who can save grace by investing in your business and catapult it into action. They will also have a financial stake in your business. If you are confident enough to pull them in, you will be able to acquire enough cash flow, and the rest of the process is well assured.

Line of Credit - Do not fear tapping into the resources of your bank. If it is a small amount of money that is initially needed, then it is recommended that you try for an SBA loan. Many people fear being strapped with debt and hence do not make use of this option. However, if you have confidence in your business and yourself,choose a line of credit.

Start-up Incubators - A start-up incubator is a company, university, or other organization that provides resources for equity to nurture young companies, helping them to survive and grow during the start-up period when they are most vulnerable. These resources would likely include office space, consulting, and even a cash investment.

Partner with a Beneficiary Company- A more established company may see the value of your product as complementary to theirs, and will be willing to advance fundingthat can be repaid with later revenue.

Partner with a Major Customer - Similar to the previous case, you may find a customer who would benefit greatly from your product, and would be willing to advance you the cost of development. The advantage to the customer is that he will have enough control to make sure it meets his requirements and will have first dibs on the delivery.

Venture Capital - Most entrepreneurs comprehend venture capital as a start-up equity investment only. The truth is contradictory to the belief. If your business has the capability of high potential return on investment, make use of venture capital.

Government Business Grants - Entrepreneurs often overlook this option, but it can be a life belt in several occasions. They are difficult to obtain and will consume your precious time, butnevertheless, a business grant from government funding cannot be overlooked.  

Second Job - A secondary job that you or your partner might hold can keep the cash flow coming in. The demerit, however, is that you will not be able to commit as much time to your business.  

Redundancy payment - Many people use their redundancy check to fund their business. It  keeps things going at a moderate pace.

All these options have their pros and cons. The key part is to understand the nature of your business and the volume of capital that is needed to keep it running. Your funding decisions will count for your pay-offs, profits and even losses. Therefore, it is recommended that you meet the 'Start-up Pros' and act accordingly.

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