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KEY POINTS

  • Seek support from friends and family who believe in your vision.
  • Crowdfunding attracts backers using platforms like Kickstarter.
  • Look also for small business grants offered by governments or private organizations.

I have started three different businesses, and all three were funded in three different ways:

  • The first business was my law firm. I funded it with a loan from a friend.
  • The second business was my content company. I self-funded that one with sales to potential clients, as well as our own funds and resources.
  • The third business was a website (that I later sold to Mark Cuban). It was funded by an investor.

The moral of the story is that there are, as they say, more ways than one to skin a cat. This is especially true when it comes to funding a small business. Let’s look at five options that do not require a traditional bank loan.

1. Friends and family

This was my first choice for my first business and it is the first choice for many new entrepreneurs for a lot of good reasons: Repayment terms should be easy and friendly. Loved ones typically do not require high interest rates nor strict repayment guidelines. This alone makes this option incredibly attractive.