Equity capital
One of the most important sources is your own money, which should account for at least 20 percent of the total capital. Equity capital is usually regarded as a benchmark by financiers. After all, equity suggests that you are serious about your project. If you can’t raise the money yourself, it might be helpful to get family and friends or a business partner on board.
Loans
Debt capital is also one of the important sources of funding when starting a business. This is where the loan comes into play, which is based on individual needs and is agreed accordingly with a short, medium or long-term term. The borrowed money is repaid according to the agreement.
Funding opportunities
The European Union, local authorities, federal and state governments offer numerous funding programs for start-ups, which are intended to support you when starting your own business. These usually include loans at good conditions. This usually involves long terms or favorable interest rates. Repayment-free initial years are also a possibility of these support programs.
Shareholders
Of course, you also have the possibility to take investors on board who participate in your company on a financial level. These are, for example, business angels, start-up funds, investment companies or private investors. The investors buy shares in your company and sell them again later. In most cases, investors also provide their expertise and support the founder with tips and advice.
