Perhaps the most intimidating part of starting a business is the financial aspect. Raising money before you have paying customers (or enough customers to turn a profit) can be a time-consuming, stressful process. Thankfully, entrepreneurs have a few funding options.
The first is to work with an investor. These individuals often ask for a portion of the company, stock, or a guarantee they’ll receive a percentage of the profits. Another option is to get a bank loan or a line of credit, which may not be available to all startups. If you have a partner or an interested customer, you can get an advance in the form of royalty payments, early licensing, or white-labeling agreements.
More popular options, especially in today’s market, are startup incubators and accelerators, as well as crowdfunding campaigns. Small business grants and community assistance are also available. Of course, some entrepreneurs can ask for funding from family, friends, or they can afford to self-fund their ventures.
No matter where you get your funding from, it’s important to pitch your product the right way. Find out how, and more about funding options, in the infographic below.