Showing posts with label Venture capital. Show all posts
Showing posts with label Venture capital. Show all posts

Thursday, April 14, 2022

Methods for Obtaining Funding for Your Business

As a business owner, you’re probably well aware of the financial challenges you’ll face when it comes time to start growing your business. That said, there are a few options available when it comes to how you can fund your business and make it a success.

Here are some of the most well-known options for obtaining funding for your business, especially if you’re trying to get things off the ground.

Business Loans

Business loans can be the boost you need to get things off the ground, so long as you meet the requirements set forth by the lender. 

For instance, you may be able to obtain a business loan from a bank or other financial institution such as Pop Funding Solutions if you have good credit ratings and enough collateral to secure the funding. 

The interest rate on a business loan is typically higher than what you would find on a personal loan, but it may be worth the extra cost if you need to acquire more business-related equipment or hire new employees.


Bootstrapping is a strategy that involves using existing assets, such as cash reserves and receivables, to fund the startup of a business. 

The goal of bootstrapping is to minimize or completely avoid borrowing money. However, this means that you’ll be missing out on the benefits offered by loans, such as lower interest rates and easier access to funding. 

To bootstrap your business, you must have some assets which you can use to generate revenue.

Venture Capital

Venture capital is a type of funding typically provided to startup companies by private investors. Venture capital is often used to help fund the acquisition of new equipment, inventory, or personnel for a business. 

Venture capitalists are also interested in companies poised for rapid growth and expansion. To receive this type of funding, you’ll need to meet certain criteria, such as having excellent credit ratings and strong business history.


Crowdfunding is a form of funding usually provided by the public at large. It’s also sometimes referred to as crowd investing. 

Crowdfunding allows individuals and businesses to raise money by soliciting contributions from a large group of people who might be interested in supporting the business or project. Thousands of companies have been funded through crowdfunding platforms like 

Kickstarter and Indiegogo

As you can see, there are many different ways to raise money. It’s important to understand what type of funding you need and how you can find it. 

The best way to find the right funding is to research and see what options are available. You may consider various sources such as family and friends, business partners, investors, or government agencies.

Saturday, December 28, 2013

The Bigger They Are The Harder They Can Fall

There are entrepreneurs who win all their battles but still manage to lose the war. A new company that experiences an abnormal growth spurt may sound like a dream come true, but unless the owner/manager is prepared ahead of time for such sudden success it may become a very bumpy victory indeed! The Greeks called it a Pyrrhic victory; a victory that almost costs more than defeat. The kind of victory an entrepreneur can’t afford to have if he or she wants to nurture his or her business into a solid, stable enterprise.

Of course, there are those entrepreneurs who relish the high seas of uncertainty and the piratical gamble of unstructured and unsupervised growth, thinking such things are recognized world-wide as a sure sign of success; but this kind of operation almost inevitably succumbs to the workaday realities of the business world and then founders, leaving investors and employees high and dry.

What are the specific challenges a new, fast-growth company faces in today’s business climate? Gary Kunkle, a research partner at Evolution Capital Partners, has done extensive research on thousands of swift-growing companies. His data base is now enormous, and his conclusions are far-reaching and thought-provoking. Here, in a nutshell, are two of them:

· The staff can’t keep up with newer, more complex demands. When a company really takes off and its sales and services increase exponentially, the staff that could easily handle a hundred sales orders per day may not be the staff that can just as easily handle a thousand orders a day. Logistics can change in the blink of an eye, but people tend to go slowly into new territory, sticking to the tried and true methods that worked for them yesterday – not realizing that old methodologies can’t handle new challenges.

Some entrepreneurs are cold-blooded enough to simply let such staffing go, but the really smart operators are aware of the time, effort, and money it took to train their original staff in the first place, and do not want to let that talent leave – to possibly work for a competitor! So instead they train their staff from the get-go to prepare for “second-tier staffing”. This means that the current logistics manager is aware that at some future point an ‘executive’ logistics manager may be appointed, to take some of the more complex procedures off of his or her hands. The smart employee at a new company will understand this concept, and be grateful for it. According to Kunkle, it is one of the best ways to prevent high employee turnover in a new company that experiences fast growth.

· The cash flow conundrum. Let’s say your new startup strikes a bonanza when a major corporation or government agency contracts with your company to provide a huge amount of product and/or service. In order to meet this new and potentially lucrative commitment you immediately hire an additional 30 people. They go to work and soon your startup is producing the promised outcome – but you are not going to be paid for this excellent work until it is completed, finished. And that won’t be for six more months. In the meantime, where are you going to get the funds to pay those 30 new employees?

According to Kunkle, it is surprising how often a new business owner will become mesmerized by future profit potential without bothering about current fiscal needs. Such unwary entrepreneurs grow themselves into a financial bind that may end their entire company. Always anticipate the need for cash infusions, says Kunkle.

This means keeping your line of credit open and healthy, and flexible, with your bankers. Also be on the lookout for other investors who may be interested in investing in a sure thing when you can show them the big, fat contract you have just signed. And finally, there’s nothing wrong in asking your new client for a down payment for future product and services, especially if it is a government contract. Government agencies are notoriously dilatory in paying their final bills, because of the vast amount of paper work they must wade through, and, of course, the always imminent threat of another Sequester. 

Wednesday, September 18, 2013

How to Turn a Nest Egg into a Windfall - The Groundwork

Is launching a small business or a start-up the recurring character in your dreams for a brighter future... except you don’t know the first thing about casting the part? Even in this economy, however you slice it, there’s money to be made by taking the entrepreneurial big leaps - the news bulletins are awash in success stories, rags-to-riches tips and even the odd oh-no-he-didn’t gasps. What’s to say yours won’t be the next business venture that carries the day on Wall Street? 

If you don’t have money to burn - and who does, these days? - but you’re considering putting your savings on the line for the chance of striking it big, take every precaution before plunging in head-first. Remember that some failure is predictable from the get-go and so, you should consider hedging your bets as best you can before putting your head on the block. 

1. Use online tools by way of planning ahead - the gung ho and the gunshy alike stand to profit from not going into a potentially costly affair on a wing and a prayer. Sorting out your finances beforehand, accounting for the initial expenses and tallying all the risks involved in founding a company are all necessary steps. A painless, free option is resorting to the Internet as your personal go-to financial adviser, which you can learn more about through just a couple of clicks. Playing it safe (being cost-conscious) and smart (getting customized financial advice) will save you money in the future.

2. Don’t discount the helping hands - even if this might not be the best time to play the market, there are still investors out there willing to gamble on start-ups. As for your presumably scanty knowledge about the investment game, you just need to keep in mind that thinking opportunistically about any venture, however dear to your heart, is all it takes, even if you’re not used to framing decisions in an economics-centric manner. If your business objectively needs more cash than you can provide, an angel investor or a venture capitalist can certainly be approached to shore it up. Even a friend or relative might be willing to pony up, just as long as you both agree to separate your professional relationship from the personal one.

3. Look out for new developments - take the trouble to scope out what other are doing and how the industry you’ve chosen to enter is faring. If you’re not yet sure about what area to go into, the Internet will provide you with more than one good idea and if you’re tech-savvy, all the better, as there are tens of avenues to choose from (of which mobile communication is the hottest right now). Regardless how advanced the industry of your choice already is - and you can look that kind of info up online, via business data aggregators, as well as putting in the legwork and the research work needed to get a read on all the players - think outside the box on ways to improve it.

It’s only at this point that you can start fine-tuning your concept, drawing up a business model and picking a catchy name for your new company. Once you get your ducks in a row, and the financing in the bag, there’s nothing preventing you from going after your dream full speed ahead.

Thursday, February 28, 2013

3 Secrets to Understanding the Truth Behind Venture Capitalist Pitches

Venture capital is all about placing your faith in an entrepreneur with a strong business plan, and a great idea. Investors place their money and support behind something new, and different, hoping that it becomes the next big thing, or that at least builds to the point of profitability.

Unfortunately, a capitalist can get caught up in the excitement or emotion behind a business venture, and end up placing their money in a concept that will never get off the ground. In a buyer-beware environment, it is essential that every investor understand the truth behind venture capitalist pitches, and throw their funding and support behind something that is more likely to thrive.

1) The Story

Every pitch contains a personal story of investment. This is the part of the pitch where investors find out exactly what the product is, and what successes the entrepreneur has had in marketing up to that point. It is the section of the pitch designed to get capitalists excited and onboard with the venture. Unfortunately, the story can put the investor at risk. It is essential that the investor try to stay detached from the story, and remain emotionally neutral. Getting emotionally involved in the entrepreneur's story can lead to rash, emotion-based decision making, rather than a fact-based investment. Draw important facts from the story, but ignore any emotional pleas. If the story proves to be all emotion, and no fact, dismiss the investment.

2) Company Positioning

The pitch will try to position the company within your known holdings. Pay attention to any misrepresentation that occurs during the positioning portion of the pitch. A good investment does not have to align with an investor's other investments, if there is a sound business plan in place. If the entrepreneur seems to go out on a limb, or skew their business plan to make it fit more completely with your current portfolio, then they are not giving you an honest view of the company. Ignore any element of the pitch that specifically targets how this project fits in with your other venture capital investments. Instead, try to view the investment as a stand alone proposition, regardless of your other holdings. It should be strong enough to stand alone if it is a sound investment.

3) Overlooking Less Obvious Investments

The final element in the pitch is designed to convince investors that this product, and business plan, is far superior to its competitors. It works to make this venture look like the obvious choice. Take the time to look or less obvious choice. Many venture capitalists have missed out on a fortune because they took the larger, more obvious investment opportunity, and let what looked like a small-time entrepreneurial venture get away. Truly analyze what makes each project unique. Look for what qualities set a product or service apart from its competitors, and go with the pitch that offers the most unique and well thought out plan, regardless of size, or salesmanship.

Kevin Aldrige is a business consultant. His articles have been posted on a number of business and finance blogs. Click to visit CSS Partners for capital growth info.

Friday, January 25, 2013

How to Get a Financier/Investor for your Business

To kick start a business, the most essential thing you need is money. You can call it finance, investment, capital or whatever you like but money is the base rule of starting a business. With the storm of poverty levels and financial crisis brewing above our heads as we head into 2013, everyone is looking to establish a stable and well-earning business. Money is the bond between you and your business and the more money you invest the better outcome you’ll get. To start your business in a rocking fashion, you need to invest a rocking amount of money which, most people cannot do so the best thing to do is to find an investor/financier or even accounts receivable lenders who will invest the money and you’ll do all the work.

How it works

How the whole aspect works is that when you need or want to start a business, you need an investment for which you need to ask others. People who have a whole lot of money but don’t like to work will answer your calls and provide you with an investment so that you can start your business. Now, there are many ways to settle your debt, either you pay the total amount of the person’s investment back to them, pay them monthly, or give them their share out of all the profit every month. 

What type of people to target?

First of all, you will need to find a perfect target for your advertisement. This target varies from business to business but there is one type of target similar to all businesses: People that have a lot of money but don’t like to work. 

How to find an investor

There are numerous ways to find an investor which include advertising but the most effective way of finding an investor or financier is to rely on your personal relations and social networks. This means that you would have to talk to the people you know who meet your requirements and you consider them potential investors. 

How to know if they are the perfect investor for you

How to know if they are the perfect investor you ask? Well, first of all they are perfect if they have a mutual understanding with you and are willing to work side by side. They are also the perfect investor for you if they have the ability to co operate with you in tough times, provided any arrive. 

How to convince your potential investor

After you have found your perfect potential investor, the next step is to convince them into investing in your business. You must be very effective and convincing in this particular part of getting an investor so that you win the heart of your potential investor and gain their trust. You must be very precise in convincing them and see to it that you do not lose their interest but only gain it.

This was a brief explanation and step by step guide on how to get an investor for your business and make sure they’re the right one. This guide also tells you the basic information you need to know about getting the perfect investor and working side by side with them so that it benefits both of you.

Austin Richerd from Pass Certification. It delivers a inclusive and really cost effective IT Certifications Cisco 650-568 Exams material. Lets take the advantage of pass certification 650-179 Test preparation material and pass your IT Certification on first try. Hope you will try it today.

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