The average business owner who wants to start a new business is faced with the challenge of raising capital. Beyond personal savings, this search for money to invest in a business idea leads to friends, family, angel investors and venture capitalists.

When these sources are not forthcoming or do not amount to much, the search extends to business loans, possibly from banks. However, it is near impossible for a bank to fund a start-up. The start-up does not have a credit standing. It will be asked to provide collateral to secure the credit. It will be requested to present business projections showing how it will make money and how the bank will be re-paid. Its chance of securing bank finance is severely limited if it cannot meet these requirements in support its loan application. Because the bank, which is not a risk-taker, expects to recover its money, principal plus interest.

The frenzy surrounding start-ups looking for money makes it seem like that is the only way to finance a new business. Certainly not.

Instead of spending your time trying to raise money from friends, family, angel investors, venture capitalists, banks, etc., bootstrapping may be your best solution.

Click here on the to read the full article https://smefinance.org/bootstrapping-101-start-on-a-shoe-string-and-raise-cash-later/

does it apply to network marketing industry too, or just normal startups