Venture Capital

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Ways to fund your next startup

Funding a business startup can be a daunting task, especially if you are new to how startup funding works. In this article, we discuss a few ways you can fund your next startup with success.

Save up and fund the venture from your wallethttp://www.nytimes.com/2015/08/10/technology/investors-find-ways-to-indirectly-profit-from-valuable-start-ups.html?_r=0

There are some ways with which you can use to get funding for new business. You can ask your friends and family to be your business partners and help you out with the finances. Or you can apply for smallĀ business loans and other commercial financing alternatives, which is what most people usually do. Or if you want free funding you can always go for grants, either from the government or from non-profit and private organizations.

Have a pitch prepared

But as you explore your options and dig further on where you can get the money to start your small business, one thing remains constant: you need to pitch your venture efficiently and convincingly before people and banks start shelling money to help you out.

When pitching your business plan, you also need to consider the audience and how you can convince them in providing you with the finances to get your small venture rolling. Each type of audience has different sets of questions that you need to cover for them to be satisfied with your sales talk. Here are some pointers that you might want to go over before peddling your business ideas to a different set of financiers.

Loan from lenders

When talking to bankers and lending officers, it is important that you speak of the following:

  • The purpose of the loan
  • How the loan will be able to help you achieve your corporate goals
  • Your repayment scheme
  • And other financial obligations, if you have any.

If faced with potential investors, you might want to discuss

  • The expected return of investments based on careful calculations and projections
  • The time frame and process of repayment

Other sources of funding

  • Profiles of your management personnel as well as track record of each one.
For shareholders, things that need to be talked about include:
  • The estimated price of their shares
  • How they will be able to sell their shares should they opt to
  • Expected dividends for their shares
  • The extent and limits of their role in the business as shareholders.

Get a business plan

Getting your business plan in order as well asksmkdmsdkvsndvknsnvksnvknskvnsknv fixing your finances will help you get funding for new ventures. But it is also important to take time and consider the audience to which you are going to show your business plan presentation. Put yourself in their shoes and provide them with the right answers to their queries will greatly help your case in getting the money you need to fund your startup.