If you want to become an entrepreneur, then you'll have to find funding to start your business. Sometimes those people who want to tackle the journey of entrepreneurship believe that finding funding will be easy. However, financing your startup is not going to be a walk in the park, and you aren't going to get a loan from a bank just because you created a business plan. Below is an infographic describing the top sources for business funding, the amount financed and how many businesses are served by each funding source.
The number of business funding sources has grown significantly within the last 50 years. At one time, you could only fund a business by bootstrapping, or saving your own money, and by borrowing from friends and family or the bank. With venture capitalists, angel investors and crowdfunding, the list has grown significantly. The amount of money poured into business has also increased, and as new disruptive technologies are introduced and funded, it may appear as if obtaining funds to start a business would be even easier. Have a large network, and a potential viral campaign? Crowdfund. Have a new technology that would change the way we do things? Tickle the ears of venture capitalists and angels to receive millions. Have a good solid business with strong financials? Get a bank loan. Unfortunately, the answers to your business funding needs are most likely going to be you and your immediate network of friends and family.
95% of business funding comes from either the entrepreneur's personal savings and credit or from friends and family that believe in the entrepreneur. The funding amounts to an average of $35,000. Crowdfunding has become increasingly popular and will continue to grow, but until then you'll have to tap into your own resources. It's easy to have delusions of grandeur and believe you'll get a million dollars in funding, so please don't fall into that trap. Your company could be worth millions, but you'll have to build it up yourself, and get by with a little help from your friends, in order to make your company worth millions. Don't be discouraged. Instead build better and long lasting relationships, save your money, and invite people to join you on your journey.