Check out these avenues for raising funds in this unpredictable market
Even though today's capital markets are unpredictable and tumultuous, entrepreneurs still have many avenues for raising funds for their startups. In addition to finding angel investors or making financing deals with suppliers and customers, entrepreneurs can also use these resources to fund their dreams.
- Stick with what you know. You will be more successful obtaining seed money and running your business if it is in a field you are already familiar with.
- Become the first investor. Get your company off the ground using your own cash flow or savings. This shows investors that you are seriously committed to your company in the long-term.
- Approach family members and friends. These people will likely be the most willing to support your business and take a chance on it. They may also be more flexible about repayment terms than banks and can also tap into their own networks to get more startup capital for your business.
- Network! Meet investors at venture-capital conferences, where you can also learn about businesses that have received funding and compare them to your own startup.
- Be prepared. Before sitting down with a venture-capital firm or bank, create a very detailed business plan. It should include your plan for finding customers, your profit and revenue projections and how much you need to grow your business.