The main objective of this Masters thesis is to produce a financing guideline for entrepreneurs on how to use traditional and alternative sources of capital, without increasing the personal financial risk of the founders. Many traditional sources of capital, such as character loans, will require the full personal liability of a founder. As a consequence, the private savings of entrepreneurs are at permanent risk while creating new ventures. This might lead to situations where founders are not able to take optimal decisions for the start-ups or it might even prevent individuals from becoming entrepreneurs in the first place. As a matter of fact, the author has chosen literature from personal financial planning as well as from investment theory to focus on the long-term objectives of entrepreneurs, instead of the interests of capital lenders and investors. In addition, traditional and alternative sources of capital for start-ups have been qualified based on personal liability in the different financing stages of a new business. This should allow entrepreneurs to reduce personal risk and to focus on building successful business ventures.