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Simply deciding to start a business in a tough decision on its own for young entrepreneurs. One of the biggest hurdles they face from there is receiving funding. Who do you turn to? Take a look at these five options you have.
You could always go to a bank or a credit union. Of course, keep in mind that these won't fund experimental ideas. However, if your idea has a chance of success and it isn't something out of this world, you may receive funding.
2. Government loans
This will depend on your country, so you should ask around. In the US, for example, there are the Small Business Administration (SBA) or 7a Loans that help business that have no real collateral.
3. Venture capitalists
Venture capitalists are searching for entrepreneurs with fresh ideas who have a huge profit potential. If you can prove that your idea can bring in the money on a small scale, you won't have too much trouble receiving the funds. Moreover, there are also some venture capitalist companies that offer scholarships to entrepreneurs, so that's another things that you should look into.
4. Angel investors
Angel investors are, contrary to venture capitalists, looking for more than a quick profit, but they are also most often individuals which means that they have less money to offer. However, they most likely have more than enough to get you off the ground.
5. People around you
If you wish to keep all of your business to yourself and avoid the pressure of pleasing your shareholders, you can turn to your friends and family. While this amount of money will almost certainly be less than what you would have got the other way round, it should still be enough for you to start. However, this still doesn't mean that you shouldn't be careful with the money. Losing friends would be a greater loss than losing shareholders.