Being an entrepreneur is not easy, and let’s face it, if it was easy, everyone would do it. We would have billions of startups and independent businesses all over the United States. What it takes is a vision, commitment, and a lot of money. All are important to making the dream a reality, but money will make or break it.
With entrepreneurs spending an average of $70,000 to start their business, it’s no wonder that most of them fail within the first ten years. In fact 69% will fail after the first seven years and 49% of startup failures are from lack of funding. Even so, in the US, small businesses generate $7.8 trillion in revenue and make up 80% of new jobs.
So where do they get their funding from anyway? There are a number of channels to fund startups, and all of them are unique. From seeking connections, to private funding, there is a way for every business. A common channel is simply from friends and family. Get enough of your personal, real life friends interested in your project and they’re likely to put money down.
Another is crowdsourcing. Using online platforms like Kickstarter, a lot of people invest a small amount of money into your project. Effectively, this gets the money needed as well as spreading the word about projects to like minded people.
This infographic presented by mba-in-finance.org can help you pinpoint exactly what kind of funding you need for your startup. Take a look below to learn more.