How to raise capital is probably major concern for any start-up business. Every start-up needs considerable investment before it begins to make profits that are subsequently used for the expansion of the business. You will need money at every stage of your business expansion.

The fact is, there are various ways through which a start-up business can be financed and deciding on the specific one that is best for you would depend completely on your product or service, your market , your financial demands , and most significantly, your individual and financial state .

Therefore bearing that in mind, here are some of the most popular ways to fund your start-up business

1. Savings and Investments

The foremost source you should think about exploring is your personal savings and investments. Self-financing is obviously one of the most preferred means of business finance because if the business should flunk, you will not be accountable to other people. On the other hand, the not so good of this method is that if the business should fail, it is your own money that does down the drain.

2. Friends and Family

After you must have fully explored your savings and investments, a lot of business people go to their family and friends for assistance. Some people find this quote helpful. But always remember that any money collected from your friends or family is a loan which you must repay someday. Remember, when your family loved ones invests in your business, they become emotionally invested in you and you can’t afford to let them down.

3. Credit Cards

Credit cards is also one of the means through which you can finance a start-up business, though this is certainly not the best option because if the business ends up failing, you might end up which might take you several years to pay off, however if you choose to fund your business on credit card remember that you will be paying pretty high interest rates on the funds you've borrowed and except if you achieve considerable success it considerable you will end up paying for that money for several years to come.

4. Bank Loans

Bank loans are extremely difficult to obtain if you do not have collateral together with a reputation of being a successful business man., which explains why a lot of entrepreneurs make use of the equity in their properties to fund their business after getting rejected by a bank for loan. Although this makes a lot more sense compared to developing your business on credit cards, the financial pitfalls are just the same. You have to repay this money not minding if your business is successful or flunked, however it is a great source of low interest cash to assist you to get rolling and the interest might be tax deductible

5. Angel Investors

Angel investors are usually wealthy individuals that invest in start-up companies for a percentage of the ownership. They are generally the first official investors in an enterprise and supply the capital to get the business started. Some of them will just provide you the required funds and give you complete freedom to run the business while some regard their investment as a warrant to "assist you" manage the business and take decisions. In case you choose to take money from angel investors, ensure that the conditions are clearly spelled out by both parties.

6. Venture Capital

Start-up businesses can also approach venture capitalists for funding to kick- start the business.. Venture capitalists have high interests in businesses that have high probability for good returns on their investments. Venture capital is a good alternative for start-up businesses that is finding it a bit difficult to raise capital in the public market. Furthermore, venture capitalists support risky businesses which one cannot secure a bank loan for.

7 .Crowd Funding

The notion of crowd funding is obvious from its name that describes the process of financing a business by the individual money of the people involved in the business. The procedure of crowd funding starts from a business plan. You propose an idea to those who you believe might have an interest in your business idea and will be willing to invest in it.

8. Sell off your used household items on eBay

You can raise some decent cash for your business by selling off some of your used household items on eBay. You could raise some decent cash from these items you consider as trash

9. Grants

Grants are the nearest thing to free funds that can ever get. Often times a government or private business will be interested in providing encouragement for business or developmental activity in a specific area and provides money to achieve it All you need to access money from grant is a good business plan.

10. Create services and sell it

Finally, peep in mind that your talent is also a capital which you can exchange for cash. , your talent is capital and can be changed to cash. Do you have any knowledge that people would be willing to pay for? If you have such knowledge that can be converted into cash, let people know about it. go to some freelancing sites such as Upwork and Fiverr and list your service there so that you can get paid and through that you will raised the necessary funds for your start-up business.

Written by: Bclique Staff Writer