I am looking over some financing for startups and seeing what options I have out there available to me but I am getting a bit lost on which direction to take. I just want a clear cut visual of all the best options so I can apply each one to see if it would work for me, my income, and my startup plans. Can you share the best options?
I would say the top three options have to be...
Obviously, if you are able to self-fund, this puts you in the best position as you don't have to rely on deadlines and you are in control of all your incoming and outgoing costs. Crowdfunding comes with deadlines and setbacks that can't always be seen coming until they hit and venture capital is almost always necessary if you are looking to launch a large business.
Self-funding will always be the best option but you have to make sure you have the money to do this or you could end up investing everything you have only to come out on bottom. I do like the idea of crowdfunding as a secondary option. You can use a platform like Go Fund Me or Kick Starter.
I always go recommend going the route of crowd-funding because this in and of itself is a safety net measure. You won't be draining all of your finances so if it fails, you won't be left with nothing. Just get backers on places like Kickstarter.
All three options mentioned are valuable but you have to consider what is right for you. If you are dealing with a smaller idea or business plan, stick with self-funding. If you are looking to local production then go with crowdfunding. For everything larger than that, venture capital.
Go with crowdfunding if the option is on the table. Venture capital is great but requires big money and bigger ideas. If you work with everyday folks who want to invest for the sake of investing, you owe nothing to them outside of completing the task.