The best source of financing for an early-stage company is paying customers. However, this requires a ready-to-market product and little cost associated with getting it to the customer. Because many companies experience a significant delay between incorporation and product delivery, some source of early-stage financing is usually critical to a startup enterprise.

The following chart summarizes the financing roadmap most entrepreneurs encounter as they seek to convert their ideas into operating companies.

Early Stage Company Financial Roadmap

For practical purposes, the common sources of financing most relevant to early-stage companies are those within or closest to the blue oval above:

Founder (aka: you)
Look in the mirror and meet your most enthusiastic and understanding early-stage investor. Your savings, your personal line of credit through a major credit card, or a home equity line of credit are frequently the first sources of funding for your new company.

Friends, family
After yourself, your best source of early capital is those who know you the best and are most likely to appreciate, indulge and (hopefully) finance your venture.