Most entrepreneurs face the dilemma of securing funding when starting a business. Almost every entrepreneur knows about angel investors, and venture capital. However, this solution is not the solution for everyone and is usually available unless you have a proven track record or have built a critical mass with your target customers. So how do you fund your idea until then?
Alternative Funding Sources
Several alternatives have emerged that connect people who have the money to those who need it, and this is good news for those looking to start a new business.
These concepts revolve around getting a "crowd" to fund you through widgets and websites. Widgets and sites allow enterprising individuals to raise funds from other people through the Internet and through social development.
There are several sites for crowdfunding out of which Crowdestor is a popular one. To get crowdestor review & 0.5% bonus find business crowdfunding platform that is genuine and gives you maximum benefit.
Peer to peer lending sites are becoming increasingly popular as a source of funding for entrepreneurs. Also known as social lending and borrowing person-to-person, this concept refers to the financial transactions that occur between individuals without the intermediation of traditional financial institutions.
Microfinance (or Microcredit) –
The concept is really gaining popularity thanks to Mohammed Yunus, Nobel Prize winner and founder of Grameen Bank. Since then, additional services such as Kiva have emerged to help entrepreneurs get started.