Making an income from self-employment is a dream for many, but the risk involved in setting a beginning for the same can be challenging to face. Keeping in mind, the current business era and all the revolutions that are taking place day by day, there are numerous ways in which you can rightly start a business and become a successful personality soon.
There are broadly two ways of raising funds which can be in terms of equity and debt. The sources of raising funds through equity and debt are discussed here.
Sources of equity:
- Self-funding: this is done by many investors, they do it themselves. They are independent and use their savings for the start of any venture they prefer to do.Also, they use credit cards or any personal debt to fund their business. This may look pretty tough in the beginning as they need to be self-sufficient, but as they progress into the future, it gets easier.
- Friends -family: resorting to help from the nearest relations like our family members and friends can be a conducive option for the business. But it is like standing on the edge of a steep cliff as it may hinder the long bound healthy relations and also cause a crack in friendships if any misunderstanding happens.
- Angel investors: these are a group of people who come forward to invest in the business. They are very affluent and also help at the right moment. They will also claim for a share of profits from the business. These people can be found through the local cha ber of commerce in your area. This is a common way to fund your business.
- Cloud funding: this is completely done online, when you announce that you have the idea of making an entry into any venture, people join together and contribute funds for the same.this very effective to find out people with similar interest but placed in a different area and having different financial capabilities. Such a mission will bring these type of people together.
- Partners: choosing a partner may help for the business in the best way, it can either be a working partner by contributing funds and extending the service in terms of working for the business or it can only strategy contributing being an enterprise specialized in the same. Hence it is better to have such helpful partnerships.
- Venture capital: these are efficient funding techniques which will offer the funds and later expect a huge share from the investment and the profits.
- Crowdfunding: a web-based method to find potential investors to get together to make a fruitful business