Finances and Funding
From Entrepedia: The Entrepreneurship Wiki
It may seem like there is very little funding available for entrepreneurs and small businesses, and that there is no option outside of a substantial loan, but the fact is that there are a variety of sources out there which are specifically designed to help the transition from business idea to reality take place. The hard part is knowing where to look, and how to maximise your chance of obtaining the funding available; there are several potential pitfalls which commonly trip up entrepreneurs if they are not aware of them or well prepared.
Basic Startup Costs
Business startup costs can quickly multiply, beginning with the more obvious costs like rent, salaries, and any technological hardware, to the little things that can be forgotten, such as stationary costs or software licenses.
Grants and Awards
Grants are probably the most desirable form of funding available for a new business, since it doesn't cost you any equity and isn't required to be repaid. There are several different kinds of grants available: local government grants for startups, green grants for green enterprises, and grants offered by individual organisations or programmes.
University Schemes
There are a variety of university schemes available, such as fellowships, which could be applicable to your business; explore the options available at your university, or the university from which you graduated, to see what they offer. They may also be aware of other funding opportunities. In any case universities offer a great resource.
Private Funding
It may seem obvious, but before you find yourself overly stressed about funding, consider the private resources that are available to you: you can save a lot of money by bootstrapping. You might want to even consider working part-time. Most businesses are at least partly funded by the savings of the founders.
Loans
Possibly one of the first financial resources to spring to mind are bank loans. However, it is important to research the different types of loans available: do you need a short-term loan? Or would a revolving credit loan be a better option? Know what you require from a loan, and what the loan is going to require from you, before you begin an application.
Angel Investors
Angel investors can be another wonderful source of funding - individuals who are willing to become financially involved in your business idea for a variety of reasons. They may be a mentor, or a family member, or even just someone who is really taken by your business idea and wants to see it succeed. However, angel investors are not always a perfect solution.
Venture Capital
Once your business or business idea has reached a certain stage of stability and potential, you should start looking for private equity funding: seek out venture capitalists who would be interested funding your company in the expectation of a healthy return in the future, and start preparing to make the perfect pitch.
