Financial Shifts for the Future of Startups

OlufisayoFebruary 24, 20131743 views

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Some 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.

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