More ways to finance a business

Crowd funding – Several websites out there can really help out small businesses. Small investments made from many investors are put together for businesses instead of each company having to look for one investor. The biggest advantage is that business owners do not have to stake equity to make money here. However, there are websites that require equity too. Most websites just demand rewards or products from the company.

Friends and family – It is a whole lot easier to repay these loans as you are free from the interests that you would otherwise have to bother about. But you need to see to it that it is a loan that you take and not give a stake in the business to the family or friend. Involving too many people that you personally know can get troublesome later on. Before making any business decision, you would have to speak to them and this can result in disputes if your opinions do not match. Go for a loan, and make sure it is settled in writing as well, to ensure security of the transaction.

Real Estate Investments – These Real Estate Investments, if done right, can earn you positive cash flow which can help in financing your small business. Rental income is one of the best ways to ensure cash flow.

Venture Capitalists – This is a great way of acquiring a large amount of money and also good advice from the venture capital investors. However, this option will be better for the small businesses beyond the start up phase as quick returns over short time period are essential.