Running your own business is a great way to experience career flexibility and financial independence. While it’s an idea that has crossed nearly everyone’s mind at one point or another, very few actually capitalize on such thoughts. There are a number of common barriers that are inherent to the startup process itself, but none are more critical than the first step: obtaining the necessary funds to begin with.
How to Fund a Startup in 2017
Enter Into a Partnership
One of the most common and most straightforward methods of funding a new business, investing partners can bring a lot more to the relationship than startup capital. While some prefer their investors take a passive role, others involve key stakeholders and partners in every part of the decision-making process. With industry knowledge, firsthand expertise and a dedication to the profitability of your company, third-party invests or partners can be a boon to the entrepreneur who is lacking funds.
Take Out a Loan
In some cases, taking out a loan with your local bank might be the only option when it comes to launching your business. Obtaining a loan can be a risky endeavor, especially with the lack of investment capital to begin with. It’s important that you understand all of the language within your contract and that you are clear on your payment deadlines, interest rates and any other fees. You’ll also want to avoid taking out a loan for more than you need, as such oversights can be difficult to recover from.
Pursue Crowdfunding
A relatively new concept, crowdfunding campaigns have been used to fund everything from next-gen electronics to personal clothing lines and even Hollywood movies. In fact, the Veronica Mars feature-length film, which debuted in 2014, raised nearly $6 million in investment capital – almost $4 million more than…