When we take a look at the business world as a whole, it is hard to deny that starting a company has never been easier. The options for networking have become very numerous, reaching out to your audience no longer requires as much money and even the most niche markets are getting good online exposure. Still, one huge obstacle that has been with us since the inception of modern capitalism remains – businesses cost money.

And, unless you are incredibly well situated, raising that capital and putting your dreams into existence requires a lot of resourcefulness. Let’s take a look at some of the easiest ways to address this issue to set you on the right path.


Government funding

Taking into consideration that, according to recent statistics, small businesses employ approximately 58.9 million of US citizens (47.5% of the private workforce), it is easy to see just how important part this sector plays in the national economy. These numbers are translatable to other developed countries around the world. It shouldn’t come as too much of a surprise then that the local governments are frequently supporting various support programs design to encourage the growth of small and medium businesses. This should be your first stop.

Angel investors and venture capitalists


In the simplest of terms, angel investors are individuals who provide financial backing to startups in their early stages.  In return, they get convertible debt or ownership equity. Unlike venture capitalists, they are usually the owners of the money they invest which makes them a bit more open to creative ideas and talented individuals. Unfortunately, angels are often hard to find, so you may resort to good old venture capitalists that will ask a share of equity and probably try to exert more control over the startup.

Debt financing

This is probably the most traditional form of a loan. You go to the bank/lenders, raise the money and then gradually repay the loan with accumulated interest. With affordable interest rates, this approach tends to be really auspicious. However, banks can be picky when choosing where to invest, and larger sums often require a flawless credit score, which can become a huge obstacle. Alternatively, you can resort to getting no security business loans that represent a much more favorable option for companies with no long-term trading history.

Crowdfunding campaigns

Ever since Kickstarter was founded in 2009, the process of raising business capital became a lot more streamlined, democratic and crowd-driven. You just need to post your idea, wait for the backers to answer the call and you get the things like Pebble, Coolest Cooler, Flow Hive, and other incredibly successful crowdfunding projects. The downside – the crowdfunding market is incredibly competitive. Trying too hard to make the crowd happy can blow viable projects out of proportion and needlessly extend the development time. Also, you need to have a perfect pitch and a very broad appeal.

Support from friends and family

Finally, there is always an option to rely on your own social circles and ask for help from your friends, family and their acquaintances. Having a working prototype or some other asset like a website will go a long way in lending you necessary credibility when it comes to pitching your ideas to secondary connections. Regardless of closeness, the terms of the loan should be legally binding and compiled in a written form. The main problem of this loan approach is that, in spite of your efforts, your social circles may not be producing enough funds to back you up.
These few tips should give you some idea of where the keys to the SMB world are buried. Each of the approaches has its share of pros and cons. It is up to you to take an honest look at your project and find the best way to leverage these conditions. It's worth the try, though. Taking ownership over your career has to be one of the best things you can do in your life.

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