55 Entrepreneurship Part 9: Financing Your Startup

How will you finance your startup? This episode presents some thoughts on the issue of financing for entrepreneurs based on my own experience, including: Why bootstrapping your business with revenue finance is the best way to fund your own startup, if you can do it The benefit of having some personal savings and no major financial commitments, if you want to start a business The role that loans can play in funding your venture and how taking out loans for business is a far better use of debt than taking out loans for consumption items Why selling equity in your company (taking investment from VC or others) is ultimately a very expensive way to fund your venture Why Business Development Grants are never "free money" and have serious drawbacks The importance of looking long and hard at whether you really need the money to get going. You probably don't need nearly as much as you think