Are you a new entrepreneur? Do you need ideas on how to get funding for new business? Here are some basic ideas that almost all entrepreneurs use to grow their business.
Guide
The best way to set up a company is without the help of any financial staff. And it is also possible. Guiding basically means building a company that combines some personal savings with cash borrowed from family and friends. Some smart founders get a lot of money by starting a company in a country with relatively low cost of living, such as Chile or Vietnam. In addition, with the help of government subsidies, they can grow easily until the income begins to enter. Some crowdfunding platforms encourage the public to make cash commitments in exchange for early use of the company's products. This makes it easier for founders to obtain capital without giving up valuable assets.
Equity financing
If the guidance is not a possible choice of the founder, they can hold shares in the company for investment purposes. While venture-rich companies are best suited for startups that need a lot of cash and want to grow fast. Don't forget that there are many other equity options for organizers with different business ideas. New founders must try to turn their company into an accelerator. They have a two- to three-month plan to help new startups work in the initial stages of development. The program can also help you find potential investors at the end of the program. The accelerator also released some success stories, and the organizers have obtained some funds and valuable guidance from some skilled entrepreneurs in exchange for 7% to 10% of their business.
Debt Financing
A young startup is not suitable for debt financing at an early stage. It must be the last choice. But in some cases, a small amount of cash is needed at the earliest. Under these circumstances, it is necessary for the company to come up with stable old loans and save the trouble of finding investors. In this case, it is recommended to check if the business is eligible for any government assistance loans. Such loans usually have good interest rate and plasticity repayment schedules.
Therefore, regardless of the way an entrepreneur chooses to seek financial assistance, it is important that he/she needs time to wisely consider the goals of the startup and how the financing strategy employed can help them achieve their goals.
Orignal From: Funding the three main sources of startups
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