Having enough money is crucial for the success of a startup, and insufficient funding is one of the top reasons why new businesses fail. Too often entrepreneurs underestimate the amount of money they'll need - not just to get started but to keep running. And although you want to be able to raise the money you need, it's not always practical or possible or even advisable to seek venture capitalist funding right away.
Nevertheless you do need enough money to get your startup through an initial period - until you are able to fund yourself or be in a position to secure a larger investment. Despite the notion that you can never really have enough funding for your business, it's important to remember that sometimes these early investments can be quite small. In other words, you don't need to have or ask for millions of dollars.
There are many considerations when deciding the avenue to pursue when you consider your funding sources. Do you have another source of income, for example? How might this early funding shape your exit strategy? How will it impact how future investors assess your business? There is no single universally correct answer here, it should be noted, as different types of businesses may find more or less success with different options.
To read the full, original article click on this link: Five Sources for Early Stage Funding
Author: Audrey Watters