Funding up yourself for startup capital is the best option for any business. However, its not possible for each and every individual to organize a large capital. Hence, in such situation, it would be best to consider taking help of online funding companies.
The appropriate funding source depends on a few things such as the life stage of the business, the industry you are in, your strategy for growth and how you would eventually like to exit the business. The source I would recommend literally is part of the overall growth strategy of the business and will be specific based on the founders wants, needs and the short, medium and long term market opportunity.
Saying all that - I would usually recommend the following path without 'talking' with you:
Step 1: Bootstrap to prove the concept and the demand
Step 2: Family and friends to achieve key short term milestones
Step 3: Angel Investors - to achieve more milestones including key customers and revenue
Step 4: Super Angels or Seed Stage Venture Capital: To start scaling the business
Step 5: Venture Capital: To launch new products, acquire small competitors, tackle new markets
Step 6: Private Equity: Significant ramp and market consolidation.
But there are significant pros and cons of which you leverage, when and the deals you strike - you need a personalized strategy for you and your company to optimize your own goals.
Good luck! Any questions just ask.
---Andrew PS - Here's a free report on creating your startup success. Free report
While ideas are often the fuel generating the creation of your business plan, startup capital is the engine that keeps the business running. All businesses need some form of startup capital to begin business operations. The type of startup capital you pursue will significantly depend on your financial background and startup business budget.
It is always better to try to fund your start-up yourself. Once you launch and are bringing in revenues, your business has more value to an investor because you have proven your concept and that you can manage a business that makes money. If you do not have enough money, enlist the help of your family, friends and people you know who might be interested in helping you start a business.
Credit cards, home equity loans and SBA loans can provide start-up funds and if you are already in operation you may be able to borrow against equipment, outstanding invoices or other assets that can be used as collateral. Many bank loans, including SBA-guaranteed loans require collateral. You may be able to borrow against investment securities such as bonds or stock portfolios, real estate, art or vehicles.
Angel investors meet certain financial or professional experience criteria to qualify as accredited investors. Angel investment groups are usually well organized gatherings of these individuals where entrepreneurs are given help in refining their business plans and presenting their business ideas in terms that investors appreciate. Although not all companies that are considered receive funding, the process of application is generally extremely helpful training for hopeful entrepreneurs.
Start up capital is the money you need to get your new business operations going.
---Thanks Ricky Mik All about Home Mortgage
Lots of great suggestions for startup capital! But for most, it's often friends and family that provide the initial funding people need to start a small business. Credit cards are also another easy source for startup capital, just be sure you don't get yourself too deep into debt until you have lower interest options available...