This post first appeared on Forbes.com. Read it here.

  1. Money from the business itself, also known as cash-flow: This can be the most attractive source of funding, if you know how to get it. Can you develop a self-funding business? You may be able to do so if you know how to do it. You may have to do so if you want to grow outside Silicon Valley by developing a self-funding growth business following the strategies of capital-efficient billion-dollar entrepreneurs. It is easier to get VC in Silicon Valley. In the first quarter of 2013, 38 percent of VC funding went to Silicon Valley and 60 percent to the top three areas, including New England and New York. Outside Silicon Valley, you may have to know how to grow with internal cash flow until you get financing on your terms. About 94 percent of the billion-dollar entrepreneurs did this.
  2. Money that you currently have, whether inherited or saved: Financiers want to fund entrepreneurs who know how to be frugal. They want to know that you can delay gratification and not waste scarce money. So if you have entrepreneurship in your future, learn to be frugal and save. Obviously, if you have inherited money or have relatives who are willing to give you money, you may not need to save. But financiers want to know that you can manage their money.
  3. Money that you can get from your friends and family, and this can include grants from Uncle Sam: Not everyone has family and friends who can invest in their company. But if you do, should you seek funds from them? On the plus side, they may not charge you as much as a professional investor. But if you do you like to see them for Thanksgiving, it may be embarrassing if you lose their money. Keep in mind that they may be the only ones who may fund you when you are unproven. There are also a few sources of grants from various levels of government, and these can be attractive if you qualify.
  4. Money from sources who will not seek control of the business: These are angel financiers who invest individually in the business, i.e. they do not invest as groups, and usually do not seek control of the business. Bob Kierlin of Fastenal raised $31,000 from his own savings and from three friends who insisted that he keep a controlling stake in Fastenal. Often these angel investors are successful entrepreneurs who like new business development. You may get advice and suggestions, but they may not always have experience in your business or industry. Industry executives, however, can open doors and offer good advice, and be a attractive source. This type also includes initial public offerings, which can be attractive, but may be accompanied by intensive regulations and costs.
  5. Money from non-financial sources that are related to your business: These can include alliances, such as corporate customers who are willing to pay you in advance, or vendors who are willing to give you very attractive terms. Billion-dollar entrepreneurs such as Dick Schulze (Best Buy), Michael Dell (Dell) and Richard Burke (UnitedHealth) used this money. If the cost and terms are not onerous, this can be a very attractive source.
  6. Money from lenders that you can pay back and keep your business: The key question is whether you have the collateral to get the loan, and the cash flow to repay the loan. Otherwise you could lose your business, and potentially your assets. This can be high-risk funding at the start if you are unsure of your sales and your cash flow.
  7. Money from sources who will seek control of your business: This is funding from venture capital institutions or from many angel groups who invest larger amounts and seek control of the business. Sometimes they have clauses that seek control if you stumble, which happened to Steve Jobs. At other times, they seek control up front and get a new CEO, as in eBay. Financiers seem to offer better terms when you have built the business and have more financing options. Mark Zuckerberg kept control by getting VC after the company was growing. Should you give up control of the business? Of the 85 billion-dollar entrepreneurs I have analyzed, only six percent relinquished control and the role of CEO of their business. The rest stayed at the helm.

MY TAKE: All money has a price. Know yours. If you can design your business model to eliminate your initial investment, you may not need money at the start. If you can grow with cash flow, you may not need money after the start, and you may be able to keep control of your business and of the wealth you create.