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Financing your business - Coggle Diagram
Financing your business
Debt Financing
One method of obtaining more money is to borrow what you need. When you do that, you will increase your company’s debt. This is called debt financing..
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Bootstrapping
As an entrepreneur, bootstrapping
means starting a business by yourself, without any outside investment.
If your start-up investment is higher than the amount you have to invest,
bootstrapping wouldn’t be possible.
This form of financing allows the entrepreneur to maintain more control, but it also can increase financial strain.
Equity Financing
If you use this method, called equity financing, you will be giving up some of your company and perhaps some control.
Angel Investor
Like any investor,an angel wants to make a profit. They might be interested in a specific type of business, or might want to support entrepreneurship in a certain community.
Venture Capital
Venture capital is money that is invested in a potentially profitable business by a specialized company whose purpose is to invest in start-ups.
Venture capital companies are more structured and more focused on high returns on investment than the typical angel investor.
They expect large profits,
then a high risk is involved.
Crowfunding
Crowdfunding is a way of raising money to finance projects and businesses. It enables fundraisers to collect money from a large number of people via online platforms.
Other Sources
They are used to generate business models and business project development, not just business ideas. Each government has public financing programs to support the entrepreneurial ecosystem through low interest loans.