Raising capital for your new venture is no small task. With perseverance and a strong business plan it is possible in today’s economy for entrepreneur to raise the funds needed for start up. Here are some tips on how to get the investments you need to be a competitor in today’s market.
- Have a clear vision of what you want for your business and your possible expenses now and for the future. There are two ways to tackle your business venture idea; high impact or small business entrepreneur. If you have grand visions such as becoming the next Apple or Yahoo, your startup capital needs will be different than someone who owns a corner store in town. With a high impact business, an individual is in a position of vast growth and wealth procured not only for himself but long term investors. As a small business owner, an individual plans to stick with his trade, wants salary security, and a location he or she can stay in for the long haul. Before raising capital, one must decide which route he or she will take
- Do your homework. Research is your best tool for raising capital for your new venture. The internet can help you seek out potential investors as well as finding out what types of funding you may qualify for. Offline you can become involved with local entrepreneurs. Conferences and workshops in your area can offer a wealth of information on how to secure funding.
- Identify what type of investment capital is best for you. Whether it be through bank financing, grants, or help from family and friends, it is important to know your options.
- Equity financing usually involves investment from an angel investor or a venture capitalist. These investors provide excellent startup capital; usually expecting some type of yield on their investment in the form of acquisition, stock buyback options, and IPOs.
- Taking out a business loan or “debt financing” is another option for raising capital. These are usually in the form of a secured or unsecured loan from a bank or financial institution.
- Family and friends can sometimes lend money to a business for startup.
- Government funding or SBA grants may be available to your company. Since 1953 the Small Business Administration or SBA has been a resourceful means for business owners seeking funding for their company. The SBA has granted over 220,000 businesses funds equaling over $45 billion dollars over the years. An SBA grant can be an excellent opportunity for the new business owner to secure the funds they need for startup.
The members of TechAssure are dedicated to helping your firm manage risks as your business goes through the various phase of raising capital. It’s important to have the members of TechAssure on your side as your company grows. For more information on how to stay protected, please contact us.