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The following article was published in our article directory on December 21, 2019.
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How Can You Raise Enough Money for Your Startup Fund?

Article Category: Business

Author Name: Jason Cohen

The most common problem that many entrepreneurs have about starting on a new business is where they could get start-up capital. There are so many great business ideas going through your head, but they might not materialize because you lack start up capital. But in order to come up with enough starting capital, you need to determine where you can get funding, after which, you will then choose the funding option that suits you and your business. You also need to present yourself in such a way that you actually look worthy of the funding opportunity.
Before choosing a specific funding option, you should first look for other options that you can also use to finance your business. When you thoroughly research the market, not only do you learn of the other choices available, you also get a deeper understanding of what they can help you with. You will find a whole mess of information online on how you can get start up capital to get your dream business off the ground.
Aside from the internet, another excellent resource for the latest information on how to raise enough starting capital for your business is the old fashioned newspaper. You can also ask experienced entrepreneurs, if you know any, for any advice on how to get started. Not only will get helpful advice, they might also be able to set you up with industry connections.
The next thing that you need to find out are the different sources of capital.
The first one is equity financing. This is a form of funding that provides you with money for starting capital, but the financiers will become part owners of the business. Most venture capitalists and informal investors usually offer equity financing. This type of loan is great for raising start-up capital because you have a fixed time period for which you can pay back the money you borrowed. However, the downside is that you stand to lose your part of the ownership of your company, you might even lose full ownership of your very own business. There are some lenders who want a bigger chunk of your business's earnings, while some want a say in every business decision. Because of these reasons, many experts advise that newbie entrepreneurs consider equity financing as a last resort.
Another way you can finance your start-up is through debt financing. Debt financing, is simply you taking on a loan from accredited agencies and most banks. Unlike equity financing, debt financing allows you sole ownership of your business, in addition, the interest of debt financing is tax deductible. However, most starting businessmen veer away from this because most lenders charge high interest rates on the loan.
Another method that is gaining popularity these days is the crowdfunding route. This is where you create an account using crowdfunding websites like, www.gofundme.com, www.patreon.com, www.indiegogo.com, and many more. You might need to put quite a lot of effort into this as you will need to create campaign videos, set up tier awards, and others.
Whichever way you choose to finance your small business does not matter, because in the end, you made a couple of people put their trust on you, whom they barely even know.

Keywords: Small business loans, Business services, Start-up capital, inventory capital, seasonal emploee funding

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