Thursday, July 2, 2015

How to Source of Funds To Build Your Startup

When thinking to load a business, to consider the business idea, business scale, competition, market demand, labor, as well as the most important to consider is the availability of venture capital and its source. Capital like the beginning of a business foundation that will be built.

But be aware that venture capital is not just money or assets, but also can be in the form of knowledge of the business, experience, courage, and networking. However, some capital mentioned above, most prospective employers big obstacles in obtaining capital in the form of money or assets.

Therefore, the most frequently asked question to me is how to obtain venture capital for those who want to start a business of micro, small and medium. Many people immediately think to borrow capital to the Bank. Unfortunately, in fact most banks will not lend venture capital, venture when you're just starting alias of zero. That maybe you can do is borrow to bank but on a personal name, so the fall is personal loans with high interest rates when compared to business loans.

Here are some alternatives that can be used to obtain operating funds, there are six types of resources that you can use, and for this article we will discuss three of them in advance:  

1. The own funds

You can obtain venture capital by using your own funds. For example, by using the savings that you have during this tube. If not enough, then you can also cover the funding shortfall by selling most valuable asset that you have today, for example precious metals or jewelry.

There is no harm in a little sacrifice for the success of the business, let's say you're investing to get a bigger profit after successfully running your business later. Remember, trying to also enter the category of investing, that you invest your money on your own efforts.  

2. Look for Grant Company

Capital can also be obtained from grants companies, both public and private companies. Currently large companies usually have the budget or the budget of its own to help build the economy of the surrounding community and the general public to channel venture capital funds through the Division of CSR (Corporate Social Responsibility).

For technical distribution of funds is usually in the form of competition event. Therefore, this event is an opportunity for potential entrepreneurs to obtain additional funds for your business continuity. for more you can see this article.

3. Cooperate
If you have friends or relatives who have similar interests and want to make it as a business, this can be an option. The business associates may only provide assistance in the form of capital, or it could be helpful also day-to-day business operations.

You also have to agree on things like sharing so that both sides no one feels aggrieved. The deal needs to be made a written agreement to anticipate when something happens in the future.