There are a lot of capital raising options and strategies being touted as the most effective on the internet. However, the success really depends on the individual entrepreneur’s wisdom, critical evaluation, and a little bit of luck in choosing the appropriate capital raising options in a given situation.

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This guide condenses the most popular choices out there into the seven most basic capital raising options and describes their various strengths and weaknesses. Below are the descriptions of the available methods for your consideration.

First of among these capital raising options is bootstrapping. With this method, your capital funding is based on profit earnings as soon as your business becomes self-sufficient (i.e., you pull yourself up “by your own bootstraps”). This may be risky since the future of your business may depend on very volatile sourcing. What’s good about it is that the money is cycled in a very direct manner that negates the need for external intervention and regulation.

Second, we look at one of the most common capital raising options: government grants and loans. This is a good path to take in the sense that it is very stable and backed up by a large funding base. However, the interest rates on loans may not be to your advantage, and there are many policies and requirements you must conform to before you can get the funds.

If you want a less formal method of raising capital, and bootstrapping is not an option, gathering funds from family and friends may be a nice choice. This does away with the requirement of collateral, and you may get more favorable interest rates.

If you’re lucky, and have the right product, you may be able to catch the attention of an angel investor. These investors are wealthy individuals who are willing to invest in small startup businesses that desperately need capital. However, finding one that is interested in your particular project may be more difficult that resorting to more conventional means.

On the other hand, venture capitalists constitute a different approach among capital raising options. They provide less burdensome policies and funding options in exchange for partnership or equity deals. If your business plan is good enough to attract a venture capitalist, gathering the proper funds is much easier, though you’ll have to surrender some control or ownership of your business.

Finally, going public may be among the last of the capital raising options a businessman might choose. This method is particularly difficult: a company has to sell shares on the public market to gain enough funding to finance its operations. This is not a common choice, given the technicalities and costs involved. Consider all your options before deciding which method suits your business best.

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