Startup Funding: Getting Cash

Among the most difficult, but not impossible, steps in the process is obtaining the capital to fund the project. After firmly deciding take on the challenge of creating a new business, the question is how to go about it. Among the options available are friends and family, bank loans, and venture capitalists.

Starting Point

Ebay founder Pierre Omidyar explains that once he had decided on the task of establishing his company among the most important needs is to have faith in the work still to be done.

“I’ve always had kind of this unshakable faith that it's going to endure,” he said, according to the Academy of Achievement. “You have to be passionate enough about it so that you will put in the hours and hard work that it takes to actually succeed there.”

What are Friends For?

The entrepreneurs’ families and friends of are an often tapped source of initial funding for new enterprises.

According to Asheesh Advani, a columnist and business owner, says that nearly half of American entrepreneurs turned to family and friends, according to the Chicago Tribune.

Among the main advantages of such financing is that no credit check is required because the lender or investor already knows the person. Depending on the giver is, payments are flexible both in terms of duration and corresponding interest payments.

Jeff Bezos, founder of Amazon once told about how he received initial funding from his parents, who simply saw the entrepreneur as kin.