1.-Get a Bank Loan: This is an option that is really traditional, for
example in Spain at least 80% of the small companies were finance in this way.
This is a really good option for the ones who has traditional projects
(restaurant, services, trade, …) . It could be a little hard, but is good to
give a chance.
- Use a credit Card: Using a credit card to fund your business is some serious risky business. Fall behind on your payment and your credit score gets whacked. Pay just the minimum each month and you could create a hole you'll never get out of. However, used responsibly, a credit card can get you out of the occasional jam and even extend your accounts payable period to shore up your cash flow.
-The famous 3F’S: Is a classic to young projects, that is unknown if they have a future or not. The F means to friends, family and fools, to invest in the project
.-Business angel: They are private investors, who decide to invest in a startup in change of a % of the business. They get along with the project much direct that a company. The biggest problem, is to get an angel to be interested in the project, here are some tips for this:
- Use a credit Card: Using a credit card to fund your business is some serious risky business. Fall behind on your payment and your credit score gets whacked. Pay just the minimum each month and you could create a hole you'll never get out of. However, used responsibly, a credit card can get you out of the occasional jam and even extend your accounts payable period to shore up your cash flow.
-The famous 3F’S: Is a classic to young projects, that is unknown if they have a future or not. The F means to friends, family and fools, to invest in the project
.-Business angel: They are private investors, who decide to invest in a startup in change of a % of the business. They get along with the project much direct that a company. The biggest problem, is to get an angel to be interested in the project, here are some tips for this:
- Add experience.
- Don’t be a fad-follower.
- Know your stuff.
- Keep in touch.
-Use your retirement funds: If you're unemployed and thinking about starting your own business, those funds you've accumulated in your retirement funds over the years can look pretty tempting. And thanks to provisions in the tax code, you actually can tap into them without penalty if you follow the right steps. The steps are simple enough, but legally complex, so you'll need someone with experience setting up a C corporation and the appropriate retirement plan to roll your retirement assets into.
-Boostrapping: It means to do some entrepreneurs with little or nothing capital, it means, to start something with the stuff that they have. The good thing about this is that the risk is almost zero, because we don’t have debts to anyone.
-Present the project to venture capital companies: Capital funds are private investors who typically invest when the project is more consolidated. Its main mission is to get out of the capital and place your part to get economic "revenue". The upside of this is that actually are companies that are accustomed to risk and lose their investment because they actually know that if one of your bets goes well, the benefit you get in return will be huge. The downside is that many venture capital companies care more about the benefits they can gain from the sale or divestiture of a business that the company itself
.- Microfinance: its small financial institutions that are specialists in small and quick loans. The advantage is that they are a lot more permissive and flexible. The downside is that the interest rates are extremely high
.-Exchange services o bartering: It means reaching agreements with other companies in a relationship in which theoretically everyone wins. While it is not a direct financing method, it is true that helps reduce fixed costs and can sometimes be a very important for companies who embark on a relationship of such savings. On the downside, dependency relationships are created and there is always the risk that one party fails to comply the same way as the other its "part of the deal", a situation that can result in unwanted conflicts.
-A lot of the creators posting their projects online have good ideas and no business expertise. They have no idea how to set up a business or how to fulfill the legal requirements of owning a business and do not have experts to guide them on this.