Financial Shifts for the Future of Startups

  

Financial Shifts for the Future of StartupsSome  people say that starting a business was never as easy as it is today,  because the Internet era has brought an endless flow of resources to  guide new entrepreneur’s steps. If we abide by their words, we can  conclude that there is a lot of truth in what they say.  Perhaps you are a business owner that has already found on the Internet  the way to fund your entrepreneurial adventure and reach the place where  your business is actually positioned. However, there is a shadow of  doubt when it comes to financing newer entrepreneurs and small  businesses in the future that we can dispel today.

Loans Will Be Dead

Taking out business loans has always been an easy solution to finance  startups, but we have seen a notorious decrease in entrepreneurs that  actually apply for one of these loans. Actually, people pursuing an  entrepreneurial dream prefer to finance their startups with a payday  loans, which is definitely the easiest way to get cash immediately  without hassles, or credit check. This tendency will probably take over  traditional loans, with payday loan borrowers gaining more financial  control to repay such debt before it turns into a financial burden.

Angels on the Rise

No, new entrepreneurs may or may not pray more often to get celestial  help to finance their small businesses, however the true fact is that  we are probably witnessing today what will be one good solution to  finance startups; angel investors. Usually an angel investor is an  entrepreneur himself/herself, but seeking to invest in a good business  idea. Angel investors probably have existed since the early 20th  century, but gained notoriety after the reality shows that TV broadcast  in recent years. In the future, the popularity of angel investors will  probably keep them among the more vial solutions to finance startups.

Best-Prepared Entrepreneurs

We have already said that Internet is an endless source of  information, including tips and tricks to save money that future  entrepreneurs might be already learning. Some others will learn based on  what their parents learned and put into practice to improve home  finances. In the long rung, financial education that they receive will  contribute to help them financing to startup their business with money  from their own savings.

Cash Will Always Reign

The increasing trend that leads people for a shift to frugality will  contribute to make future entrepreneurs value cash as a financing source  for a startup business. Cash may not only be preferred over plastic  money or investment instruments, but people will find that it is easier  to find cash by performing alternative jobs in their spare time, than  getting credit or money from other sources.

Family Connections Are Forever

Similarly, family and close friends will continue providing love  money, which is the financial term used to describe when people close to  an entrepreneur help to finance a startup business. Usually love money  is lent with no strings attached and can be the foundation for a  successful family owned business as we have seen through throughout  history.

Stevie Clapton works in the finance community and has tons of experience regarding financial and frugal choices. You can also connect with him on twitter and stay updated.

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One Response
  1. March 11, 2013

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