Startup guide: Business funding

Starting up a business is great and exciting but not easy. One of the things you need to secure for your business plans and ideas to come alive is funding.

So today, let's talk about the ways you can fund your startup. There are three things you need to know, bootstrapping, equity and debt. These three are the ways you fund your startup but how does that work or what do they mean?

Bootstrapping

This is a term used often to describe building a company with only the resources you have. That means using personal savings, borrowing from family and friends and credit cards. If the business you're trying to start is small, this usually is enough to cover for essentials to get the business started.

Equity

Equity funding is a way to gather funds by selling stocks or ownership in your company, this means you are giving them control in your company.

Debt

This usually is by obtaining loans. Can be loans from banks or from alternative online lenders. However, the availability of this still would depend if you qualify with the minimum requirement these lenders are asking for.

Conclusion

Like what I said, starting a company or business is never easy but it can be worth it. In this time and age, funding startups is available in many ways and forms and it's just wise to evaluate and consider every option available.