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What do entrepreneurs with little capital most often do to finance their businesses?

What do entrepreneurs with little capital most often do to finance their businesses?

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Answer #1

There are 4-5 ways to finance a business when your own start up capital is less.

1) Loans from a bank which involves no sale of equity but a financial loan for a business which could be short/mid term or long term financing and helps with working capital and asset purchases.

2) Angel funding from a Venture Capitalist : Usually involves a sale of equity of the firm and helps to bring credibility to a business and also advice.

3) Friends and family: They ask their friends and family to help them by pitching in a small amount which will help them get their venture off the ground.

4) Advances from Customers: They can take bookings to manufacture products beforehand or a service contract money can be registered before the service is provided. A Kickstarter or a GoFundMe campaign can also be run for seed funding.

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