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Raising capital is the most basic of all business activities, but it may not be easy; in fact, it is often a complex and frustrating process.
However, if you have studied and planned effectively, raising money for your business will go as smoothly as possible.
1. What to Know Before You Try to Raise Capital
2. True Costs of Raising Capital
3. Startup Costs
Finding the Money You Need
There are several sources to consider when looking for financing. It is important to explore all of your options before making a decision.
Personal savings: The primary source of capital for most new businesses comes from savings and other personal resources. While credit cards are often used to finance business needs, there are usually better options available, even for very small loans.
Friends and relatives: Many entrepreneurs look to private sources such as friends and family when starting out in a business venture. Often, money is loaned interest-free or at a low interest rate, which can be beneficial when getting started.
Banks and credit unions: The most common sources of funding, banks and credit unions, will provide a loan if you can show that your business proposal is sound.
Angel Investors and Venture capital firms: These individuals and firms help expanding companies grow in exchange for equity or partial ownership.
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