Venture capitalists and angel investors can be very useful external sources of capital for established businesses, but the value they bring to new ventures and start-ups is questionable at best. Entrepreneurs should aim to finance their ventures by means other than venture capitalists, private equity and angel investors unless a large fortune is needed to finance business start-up activities or they choose to work with investors specifically focused on very early-stage start-ups. Here are eight strategies in which many entrepreneurs might choose to finance their ventures:
Business Credit Cards
Many successful businesses, such as Under Armour, were financed through credit cards in the very early stages of their venture. While credit cards are not necessarily the most ideal source of financing as they do have their drawbacks, if used correctly they can be a very effective source of financing.
How to use a business credit card correctly:
- Effectively manage cash flow by not having to pay for purchases until the end of the billing cycle.
- Use to pay for start-up fixed and upfront costs so you can make your first sale
- Plan ahead on how you will pay off the balance, then create a backup plan
To read the full, original article click on this link: How To Finance Your Startup Without Venture Capital And Angel Investors : The Four Star Investor
Author: The Four Star Investor
