There are some people who want to start a new business but the main problem is the arrangement of funds. There are many ways in which funds can be arranged for startups but there is a risk that if the business will not work then all the money will be a waste. So before choosing a funding option, one should also take care about the pros and cons of that funding. Here are some options that can be used for funding.
This can be one of the best sources of funds. If the startup owner has his savings, then he can control everything and there will be no dependency on anybody.
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A person who wants to start a business can ask his family or friends for financial support. Through this type of funding, a business can be started and if it succeeds, the business can look for more options for funding.
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In this type of funding, the owner of the business collects a small amount of money from many people This is mostly done through internet and the owner can have a large sum of money for his business. The owner can connect various people through himself, family, friends, and social media.
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These are the investors who can invest a large sum of money in exchange for some equity shares. These investors can either work individually or in the group. They also see the future prospects of the business before investing.
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Also Read: Housejoy Raises $3.24 Mn After A Three-Year Gap
These are the investors who invest a large sum of money in the startup company. In exchange, they get the equity shares. When the business is launched among the public, then they get returns on the shares. They also get a return if another company buys the startup.
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Another best source of funding is bank loans. The owner has to take care of options through which he will be able to pay the loan and interest.
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