Getting Your Small Business Off the Ground Jan 16th
The 20th century was the century of the employee. The 21st century will be the time of the entrepreneur. You have the knowledge, experience, insight, dedication, and raw talent to succeed in the field of your choice. You believe that you can do much better on your own, and you have tired of dedicating your energies and expertise to the aim of making other people wealthy. Your days as an employee are over. It is time for you to set out on your own.
Launching a startup begins with an idea. That idea must then be transformed into a concrete business plan. The conception you draw up need not be perfect in all points, but it must be clear, direct, and thorough enough to show that you have the vision, direction, and competence to build and to run a successful business.
This is an essential component of finding the funding you need to actually get the enterprise off the ground. The next step is to consider your borrowing options. These are much more plentiful than you might think. You have several broad options: venture capital, individual investors, crowdfunding, and institutional lenders.
Are you still working your 9-5 job while getting the business started on the side? It can be difficult to afford time to dedicate to a new business venture when it is still necessary to earn an income to afford necessary living expenses. Depending on your situation, cutting hours at your current job or switching to part-time in order to invest in your new business might be the best solution. Making adjustments to your lifestyle to make up for the drop in income will be a necessary measure as well. During this transitional period, short-term lending options such as those available from Blue Trust Loans, may be able to help cover living expenses that are outside of your income right now.
While ensuring that your livelihood is taken care of while you make your business plans, it is also important to look towards financing your startup. Assembling a mock-up of operations and products to pitch to financiers is good preparation work towards finding investors and partners.
The last ten years have seen a renaissance in venture capital funding. Up until the end of the last decade, it had become too bureaucratic, uninventive, and conservative to take the kind of risks that lead to true industrial innovation. The tremendous growth of the last ten years has left the sector awash with cash and members hungry to find the next big idea to invest in. The emergence of new and more flexible venture capital firms makes it easier for entrepreneurs to get the funding they need.
Getting the money from individual investors is also an option. Sometimes referred to as Angel Investors, persons and families with enormous wealth can be tapped to give you the seed money for your business. They are usually contacted through groups and networks whose sole purpose is to match them with investment opportunities.
Crowdfunding is another source of capital. Although individual entrepreneurs do no enjoy as much success raising the money they need as when this phenomenon first hit social media, there is still a chance of raising some cash by a direct appeal to persons you’re connected to on Facebook, Twitter, and other sites. The main drawback of crowdfunding is that it works very much like a pledge system. People may say they will donate a certain amount of money, but may not actually come through. It is not as reliable as having an established contract with a lender.
You can also borrow money from banks and specialized lenders. You should consider the latter first. Banks can be a good source for a startup loan, but you may be required to expend a great deal of time and effort to pass a rigorous screening process. Even then the money may be insufficient and the terms of repayment unacceptable.
Lending companies that specialize in helping small businesses with cash are the better option. These micro-banks have as their sole purpose the financing of startups. They will be able to offer you much more flexible terms. They will also be able to go on helping as you grow the business and need more financing to get through.
If you are determined to make your dreams come true, then you should weigh the various options laid out above carefully. It is possible the best option is to pursue a combination of them to get the money you need.
Jan 16th
The 20th century was the century of the employee. The 21st century will be the time of the entrepreneur. You have the knowledge, experience, insight, dedication, and raw talent to succeed in the field of your choice. You believe that you can do much better on your own, and you have tired of dedicating your energies and expertise to the aim of making other people wealthy. Your days as an employee are over. It is time for you to set out on your own.
Launching a startup begins with an idea. That idea must then be transformed into a concrete business plan. The conception you draw up need not be perfect in all points, but it must be clear, direct, and thorough enough to show that you have the vision, direction, and competence to build and to run a successful business.
This is an essential component of finding the funding you need to actually get the enterprise off the ground. The next step is to consider your borrowing options. These are much more plentiful than you might think. You have several broad options: venture capital, individual investors, crowdfunding, and institutional lenders.
The last ten years have seen a renaissance in venture capital funding. Up until the end of the last decade, it had become too bureaucratic, uninventive, and conservative to take the kind of risks that lead to true industrial innovation. The tremendous growth of the last ten years has left the sector awash with cash and members hungry to find the next big idea to invest in. The emergence of new and more flexible venture capital firms makes it easier for entrepreneurs to get the funding they need.
Getting the money from individual investors is also an option. Sometimes referred to as Angel Investors, persons and families with enormous wealth can be tapped to give you the seed money for your business. They are usually contacted through groups and networks whose sole purpose is to match them with investment opportunities.
Crowdfunding is another source of capital. Although individual entrepreneurs do no enjoy as much success raising the money they need as when this phenomenon first hit social media, there is still a chance of raising some cash by a direct appeal to persons you’re connected to on Facebook, Twitter, and other sites. The main drawback of crowdfunding is that it works very much like a pledge system. People may say they will donate a certain amount of money, but may not actually come through. It is not as reliable as having an established contract with a lender.
You can also borrow money from banks and specialized lenders. You should consider the latter first. Banks can be a good source for a startup loan, but you may be required to expend a great deal of time and effort to pass a rigorous screening process. Even then the money may be insufficient and the terms of repayment unacceptable.
Lending companies that specialize in helping small businesses with cash are the better option. These micro-banks have as their sole purpose the financing of startups. They will be able to offer you much more flexible terms. They will also be able to go on helping as you grow the business and need more financing to get through.
If you are determined to make your dreams come true, then you should weigh the various options laid out above carefully. It is possible the best option is to pursue a combination of them to get the money you need.
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