How to raise funding for a business start-up or Raising capital to start a new business is not as easy as setting up a lemonade stand or selling Girl Scout cookies.
Funds deficiency is the main reason of failure for any business start-up.
Therefore plenty of great products and ideas that have never come close to making it to the public.
Many famous companies like Google, Facebook, Apple, Samsung are our daily life parts and routine and this can never happen if American entrepreneurship had not gone for it.
How to Raise Funding for a Business Start-up:
As I mentioned earlier you must find somebody who can introduce you to the investors to connect as a partner. Or pay someone to connect with investers.
First of all, make a list of professional investors from the industry you want a partner. Then find some link to them or email. Introduce yourself and explain the reason for the email. Ask investers if they can meet, in this way you will connect with some investers.
Your introduction must be precise and short. You can also tell those investors from whom you are connected.
Tell investors openly that you know where he/she have invested and also we are not raising fund now but we are planning to open around in the next few months. If you have some spare time can I send you my investment plan for you to take a look and give your opinion?
Why not going with money in the first intro:
The reason why not raising money because no need to show hurry for raising money but to build a relation, and this will be the first impression.
Because no investor will put money on a newbie. But investor will give money if they will see you don’t need money but a good relationship.
When you will share their thoughts during a cup of tea or coffee meanwhile get some point and open discussion about investment program and terms and conditions.
So it said that you need to pitch one investor five thousand dollars.
Always respond to their emails and try to give them some visibility to what’s going on to your company and its better if possible be in touch every week with updates and progress of the company as you committed with them.
Getting very first investor is a hard task but after that, you can ask others to follow your company progress and relationship with the investor. Ask other investers to be a partner by telling about lead investers and the %percentage of the commitment.
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Here are five ways to generate capital for your business in today’s economy:
1. Social Linkages:
A tried and true practice, this has been a basis of start-up funding for hundreds of years.
A failed business can lead to stress any relations or it can end of all relationships. However, if it has not involved any risk.
2. SBA Express:
The Small Business Association provides several ways of borrowing money.
SBA Express allows bank-qualified business owners to borrow up to $150,000 without filing the typical SBA loan application.
SO anyone can get a loan within 2 days as the result.
3.Community Bank Funding:
Loaning of Public banks has flexibility in their terms and conditions however, large banks do not have much flexibility.
There are almost 6,000 public banks in America, so try to reach out to local investors through independent bankers.
4. Multiple Investors:
There are many big investors like Indiegogo and Kickstarter who have raised big cash from different inverters.
Look for the investor who will give you fund if you have an original idea or a project. Tell the investor about realistic funding and the timeline of your project.
These crowdfunding websites hold the percentage of the money as their fees. Also to receive the authentic money all tasks must complete as by the funding before the time runs out.
5. DPOUSA Forum:
DPOUSA is a big financial platform that helps to grow and expand the country. They are giving the best chances to their clients throughout the year without any leave. They are led by helping businesses to be created, expanded, acquired, and transferred. More than 34,000 recognized investors representing over $600 billion in the capital of a direct public offering to a growing base.
DPOUSA has more than 60 professionals from different industries to assist its client companies. DPOUSA has a special council name Unique to DPOUSA. For more info about DPOUSA visit their website at www.DPOUSA.com.
There will be many willing investors for the new businesses even the economy state is good or bad. Money helps is always there from many sources.
Therefore if anyone finds investors then he must show great business plans and how to execute it and how investors will be benefited.