Funding accelerates what you already have going with your business. Before you seek funding you should have a core process for acquiring customers and providing a service.
Understanding the Best Source for Funding Your Business
There are several sources available to take into consideration when looking to fund your business. A few you may consider are:
1. Debt Financing
Debt financing requires you to pay back the loan you take out. However, after the loan is paid, you own the business outright.
2. Self-funding
Simply stated, self-funding means you put in your own money to fund the business.
3. Bootstrapping
This is another way of saying find a customer who will pay for your product/service. This is also known as customer funding. In order to bootstrap you may need to offer additional services at a higher price to cover the startup costs, but this is a great way to grow your business as it keeps you focused on your product and customers.
How Much Equity Funding You Should Raise
When it comes to equity, it’s important to raise enough so that it will take your business to the next level. Your fundraise should take you