As your small company progresses through the five stages of growth, your financing options could go from begging to a "reverse merger"

Building a company from scratch is never easy. You have got to create products customers want, a business model that works, and a team that can execute with precision. On top of that, you need lots of luck, good timing, and money in the bank.

Venture capital holds the promise of solving your money problems. But it is very hard to obtain and requires you to give up control of your company to the venture capital firm (see BusinessWeek.com, 7/17/06, "Venture Capital, the Good, Bad, and Ugly"). The best strategy is to constantly review your alternatives and make do with what you have. As your company grows and achieves success, new options will keep opening up. You'll find that financing comes most easily when you don't need it.

Find out how to finance your small business without VCs in BusinessWeek.com.