Editor’s Note: This article if for new venture founders who come to us for help in building their professional web presence as well as translating their startup ideas into digital products.
The reason most fantastic ideas do not get off the ground is that the company was unable to raise the funds to start the venture. While large corporates are able to introduce new products or services, as they are able to carry this product/service until profits are shown, new comers are forced to jump through hoops to get their ideas started.
So what ways can a new company raise start-up capital?
Involving Friends and Family:
Of all the funding sources available, your friends and family are more likely to be the most willing to lend you money on your new venture. Having your friends and family invest in your company will give you not only the financial support, but also the emotional support required to make the venture a success.
Kick Starter:
Kick Starter is a fantastic new trend that allows you to obtain financing – for your venture – from the public. The way the website works is that you load your trademarked idea onto the website, with the amount of financing required, and then asks people to help fund your company. Often the entrepreneur offers investors’ incentives to invest in the company. For instance: the first five hundred people to invest get ten percent off the product or a share in the profits.
Business Partner:
Bring in a business partner is a fantastic way to share the capital requirements and work load when starting a new company. A business partner with a different skill set is able to see problems from a different angle and give a fresh perspective on ideas. Ensure that you first make a note of the style of business partner you are looking for, before approaching someone. This way you will find someone that is the right fit for your style and the company that you are trying to create.
Angel Investors:
An angel investor is an affluent individual who provides capital to start-up companies, usually in exchange for a portion of ownership or shares in the company. In addition to the capital injection into your company, angel investors provide valuable know-how and advice on running a business.
Banks:
Take out a loan from your local bank. In order to obtain a bank loan, you will need: a solid business plan, a clear idea of when your company will turn profitable and provide collateral for the loan. This collateral needs to be of similar value to the loan, for instance: a home or flat.
These are five ways in which you can raise capital for your new venture. Ensure that you safeguard yourself and trademark your idea before asking people for money. This way you will prevent someone from stealing your ideas.
I am Greg Jones and I started my company with a business partner. We used a debit order company to handle our expenses, which freed us up to focusing on selling products to clients. Five years later, business has never been better and we are still growing at a fast pace.