The recipe of a successful business: one brilliant idea, strong enthusiasm and initial capital. If the last ingredient is all that is needed, I’ll advice where to get startup funding. Before rushing into the investment process, stop for a second and think whether it’s worth the implementation. Yes, the business idea might have seemed perfect as soon as it came in the mind, and while at first glance it might appear flawless, that’s incredibly far from the truth.
Take an objective perspective, adequately assess it, and do intensive market research. In the course of the research, understand whether the idea will change something and become valuable to the world. Is it worth it? Excellent! Then go for the business plan and the initial capital. The next step is to keep in mind that the idea is not everything. This is a bit difficult, but this is how an entrepreneurial approach is formed.
For attraction of the first investment, you need to calculate all the necessary investments, risks and potential profit?—?otherwise it might not be possible to explain the plan to the investor how worth it is? The business plan’s path to success should be accurately documented and create a solid foundation for the business from a legal stand point. Analyze all anticipated income and expenses. Consideration of our own time should be included in the time. Expectation of profit is expected or not.
A thorough check is needed for all the calculation, a recheck should be done by someone else also. If the profit remain same, confidently move on and start looking for investors. We are close to minimum viable product (MVP) that is what is needed for the capital. But we start with prototype also. We can explain the product and demonstrate to the investor about how the product will look like. Time and money is required by the prototype development, provided we do not have the technical skills to develop the product on our own.
Let’s find out how to get funding for a startup and explore the various startup funding stages we should go through.
Saving: Starting a business is fundamentally risky. Starting a business with our own is better as there will be no outside influence and in case a failure is there we will not be in debts.This will give a fixed scale at the beginning and create the project the way we want to see it. Attract investors at other stages, start right and get results.
Credit card or bank loan: There are certain things when a business is financed with a credit card. Approval for a business card does take long and minimum payments are generally low. For setting up a business quickly and not having enough money, credit card is an attractive option. But on the contrary, use of Plastic can be risky if you run behind on payment. Even one payment can seriously damage the loan. Giving of minimum payments can lead the debts for years.
Whatever financing is used at the start, make sure that you have to return on the investment plan. Choose what is most suitable for the company and suits the strenghths.