There is a study that proved that 94% of the businesses fail during the first year. It is a rough ride when you do not know where you are going. If you have created a business plan that is accountable and actionable. Then you can keep the records of monthly sales and costs to get the vision to plan for the next quarter. So the funding when you start up or when you are going to operate your business on a large scale is needed. I will give you some options how you can find capital when you are starting up or when you are going to invest in your exsisting business when you plan to scale.
Self-funding your business.
If you have finished high school and got a diploma on a level which you can start a business of your own. Then you plan for the first 10 years to work for boss. This means when you are 23 years of old you can make around 2000 usd at working for company like Coca-Cola as an account-manager. You can save 1000 usd per month and this means on a 10 year base that you have saved 120.000 usd after when you are 33 you can fund your own business and generate large sums of money when you have created a business plan.
Crowdfunding to start a business.
There are several major sites which give you chance to sign up and find future consumers who want to buy your product and donate. You need to provide solid information where you need the money for. If you are going to start a soda company then you can place and image of the brand name and the pricing and the flavours you are going to supply. This also means marketing and gaining interest of the consumers. Also you can gain attention of the common people who are willing to donate and reject the professional investors and money hungry opportunists who want to be part of your business. It is kind of competitive to earn on the crowd funding area. You need to let the consumers smell that your business is going to be successful and the consumers will get an quality product for the right price.
The angel investors is an option.
These investors have a keen interest in giving money for a return on their investment. They want to know what type of profits you will gain in a certain period and how solid your business model is. If you can prove that your business can secure the money these angel investors give you. And you pay the interest on time. Then you might want to find angel investors to gain start up money to fund your business. Big names such as Google, Alibaba and Yahoo got funded funded by these angel investors. These angel investors are funding companies in the early stage of growth. Once you have scaled up your business then you will automatically generate enough profits to pay off the funding of these angel investors.
Venture capitalist investors might be something for you.
If you starting a small business and you are passed the start up phase and you want to scale your business with a help of the venture capital investors then this might be a good option. Fast growing companies can get help from these venture capital investors. Then are looking for businesses that are going to grow within 5 years and are going to gain lots of profits within this period. They are scoping for large opportunities that will grow fast from 3 to 5 years. They are asking for overview and controle of your business. If you have no problem with this then this might be something for you.
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