Alternative sources of business funding

The three key things to watch out for when seeking alternative sources of funding are friends, family and sharks.

Many entrepreneurs turn to friends and family for investment. The danger here is that when your business is financed by friends and family, you risk losing your business and those relationships at the same time.

Also, be very careful dealing with anybody who offers to help you find financing as a service for money. These are shark-infested waters. There are legitimate providers out there, but they are hard to find. Two general rules: Never pay money in advance for investment-finding services, and a request for money in advance should be a warning sign.