What are the Top 5 Funding Options for any business?

These are the questions that arise when we look for funding options. In this blog, I answered the above questions and you will get the best answer of funding for your business.
There are the top 5 best funding options:

1. Bootstrapping

A business is done by personal savings and without giving any equity to anyone else. This option is good for those who are doing first-time business. Bootstrap is a business entrepreneur with little or no outside cash or other support launches. If you want to develop your product and it will take some time to enter the market, then this option is perfect for you.

2. Crowd Funding

It is a funding option in which the business is funded by common people. A business owner explains the business plan to the public typically via. internet and people fund the business. This is a competitive option as a business owner has to explain the business in a very easy language as they are not professional investors otherwise it will be difficult to get investment.

3. Angel Investment

Angel Investor is an individual who provides capital for the business and in return wants ownership or equity in the business. As there is a high risk in startup businesses, an angel investor usually takes around 30% equity. As a shareholder, he starts interfering in the daily operations, and if the thought process of the business owner and shareholder clashes, then it can create problems in a business. So this method is good for new ventures who want a good amount for their business.

4. Venture Capitalist

Venture Capital is a firm or a group that invests in high growth ventures. They usually invest in businesses that started giving high growth. As compared to Angel Investor, venture capitalists give a huge amount of money to the business. But in exchange they want equity and they usually exit when there is an IPO or acquisition. They invest in any business for a time period of three to five years. As an angel investor, venture capitalist also tries to control the business and as a business owner, you will lose the flexibility of the business. If you want full control and flexibility then this option is not for you. But if you want high profit and future growth, then this is the best option.

5. Business Loans

The business can take loans from any leading bank in India by sharing their business plan and future growth. There is risk of debt as you have to return the amount to the bank with interest. So if you have full confidence on your business, then only go with this option. These are the top 5 funding options for any business.


Watch video on top 5 funding options on youtube.


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