How as a starter get money

Miscellaneous KratosistheGodofWar August 7, 2016 0 0
Money! Young entrepreneurs first have a financial cushion needed to grow well. Even as banks pull out, there are opportunities: business angels, crowdfunding and so on. Below is an overview of how start-ups come in venture capital from private lenders and what to look for.

Sources of alternative financing

A successful business starts or state often depends on the financial resources available to an entrepreneur. Not for nothing attend entrepreneurs nowadays special workshops before entering the conversation credit at the bank.
But what banks can not calculate or do not understand, they do not finance it. For innovative entrepreneurs are the road is long and full of obstacles. Not without reason is capital for innovative start-ups also called risk capital if the idea fails, the invested money is gone.
To venture capital, there are three main possibilities:
  • business angels;
  • venture capital;
  • crowdfunding.

Wealthy individuals as lenders

The story goes that self-made billionaire David Green and Hobby Lobby founder of one of his first financial backers met in the stairwell. He brought just the waste down when he met his neighbor. Who was himself a very successful builder. So Green spontaneously asked him for advice.
The two agreed for a beer and discussed the idea of ​​establishing Hobby Lobby. Green and his neighbor also mused about possible sources of funds and the neighbor must have said at one point, "Well, maybe we should invest in your concept." A few months later, Green $ 50,000 from him and two other lenders on the account. And not long after, his company operational.

As banking and government funding sources have been exhausted

But unfortunately not everyone has a wealthy and experienced financier accidentally at his home. For most entrepreneurs, it is the biggest task in an early stage to get money. If financing through bank and government are exhausted or are not appropriate, private sector capital should help.
The easiest are the ones who want to make themselves independent with a proven concept, for example, with a physiotherapy practice. And who can demonstrate additional collateral, yet will in most cases be a loan from his bank. Much more difficult, however, are the ones with truly new ideas.

What are business angels?

A business angel is especially interesting for entrepreneurs who have not much more than an idea or a prototype.
?? Angels ?? they are called, because they help in the background:
  • hand with money;
  • on the other hand with experience and contacts.

How does one become a business angel?

Usually the person has ever own a business started or taken, and is therefore very familiar with the phenomenon of entrepreneurship. Illustrative is the story of a typical business angel which their two young entrepreneurs convinced not 30 000 but 80 000 euros capital to take because he knew how quickly the money would be used up again.
Business angels are usually self very passionate entrepreneurs who therefore have anything to make starting a new business succeed. In the ideal scenario is one business already familiar with the founders and also knows the market and the industry already outstanding.
For their capital and their tips are given the angels ?? ?? Shares of the company, in order later to benefit from profits or sales. Negotiations on how large that share should be, is probably the biggest challenge for the budding entrepreneur. Because both parties must reach agreement on how the young company is actually worth.