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Do you want to start a business without money? These types of financing can help you
You are starting a business, there may be a million worth of ideas, perhaps just want to open a beautiful cafe, but want to achieve these ideas on the premise that you need enough money to make a dream come true.
This is a user generated content for MyStory, a YourStory initiative to enable its community to contribute and have their voices heard. The views and writings here reflect that of the author and not of YourStory.
Whether you like it or not, it's all about startups.
The most common problem for most startups is "how do I find money to run the company," that is, how to seek to finance. "As long as you have a new, exciting business idea, investors, blogs and write for us technology community will throw money at you."
The popular myth is what you think about it, and there is more than one little bit.
First, let us clarify the concept of “financing.”
Financing, that is, financing refers to the monetary means of exchange used to pay for the purchase of cash in excess of the cash, or the monetary means are taken to raise capital for the purpose of obtaining capital.
To develop a business, to expand, we must rely on financing, as we have often heard around, B round, C round of financing. In recent years, more and more start-ups have also obtained funds for development through financing.
With the rapid increase in the number of start-up companies, access to financing is also increasing difficulty, but difficult to still have to stick to it, let us set a small target, first melting him a billion ~ Seeking "financing" of the seven paths
Path one: start from yourself
When first getting started, many entrepreneurs use “own money." In short, you fund your start-up company yourself and finance your company by scrapping your own personal savings.
Choosing your own funds means you do not have a lot of money, especially when you're in a hurry. In addition, you do not have to give up any equity or control over financing, and your business can always be your own business.
However, in the early stages of business, financing by means of own funds means you have to save as much as possible. If you want to expand your business rapidly, then it is most advantageous to introduce external sources of funding.
Path two: family and friends
Looking for outside funding at the beginning, you probably do not have the means to do it, and professional investors also expect to make informed decisions about your credibility. At this point, it may often be a good first step to find the closest financing for your family or friends.
Path three: online crowdfunding campaign
We are no stranger to the concept of "crowdfunding" and, as a recent source of funding, start-ups can get financing by making online promises or pre-sales of goods.
Crowdfunding not only allows you to make money but more importantly, it gives you access to a group of fans interested in your product.
Fan groups are usually more valuable than the actual money; after all, such a gang did not get the product to dare to vote for money, "True Love", no matter what they feel confident of it!
Path four: join the start incubator or accelerator
Before that this world did not pick up the money, this link can give you some expectations.
Incubators and accelerators are one such resource that gives start-ups free resources, including office facilities and consulting services, and even seed money. Like the Y Combinatory in the United States, various incubators at domestic universities can provide some necessary help to startups. Therefore, the conditional children's shoes are not as brave enough to deliver your application letter.
Path five: angel investment
Hear the “angel investment” this attractive word, is not feeling the tiger startled it?
The move to Angel Investing basically means that you're a big step closer to becoming a successful entrepreneur. These swing-wing angel investors are usually business professionals who build high-net-worth businesses and are looking to invest in promising companies.
Usually, an angel will invest tens of thousands to millions of dollars.
There are many ways to find an angel. For example, you can consult those entrepreneurs in your circle of friends or view the start-ups of those startups looking for personal investor information above. However, please note that before persuading investors, you have to have a complete business plan, or just wasted time with each other.
Path six: venture capital
If your company develops well and needs more capital (at least $ 1 million), you will need to move to venture capital. We know the A round, B round; C round of investment took place at this stage. Although venture capitalists may need a more in-depth and meticulous business plan, it can also give you more money.
Venture capital firms typically invest in multiple different companies for their clients and want to earn money through one of them (or all) to repay clients' investments. This means they can see a wide variety of businesses, and you have to work hard to differentiate yourself. In addition, you should know that venture capital firms are looking for projects that yield between 3 and 10 times the rate of return, which typically occurs in the next 5-7 years, so it's best to have your business model implement this template.
The best way to meet with venture capitalists is through presentations by other entrepreneurs or investors, whose endorsement can greatly enhance your financing success.
Want to get these resources; you are required to set up your own network of contacts at the beginning of the venture. Of course, if you feel that you have a poor social network, you can also rely on high-quality FA such as Hoaxing, which provides professional FA services. It can also help entrepreneurs match up financing resources.
So, do not counsel, that is dry!
In addition, there are some funds from grants, loan programs, such as the domestic micro-enterprise support policies, or some special industries to support programs, entrepreneurs in related industries can be a lot of attention.
Financing is probably the most difficult part of getting your business up and running, but it's also the most valuable. Once you get the money, get a loan approved, or find someone else to invest in your business, you can go back or start your dream job! While this may be a long, successful journey, it’s exciting to look ally (be it friends, angel investors or venture capitalists) along the way to help you make your dreams a reality.