World Business Advices

Do you know that it’s a tough and difficult? you have a brilliant business idea and do not get money anywhere to put it into practice. So we said in a previous post that an idea was not enough to build a business. (See Even if you do not believe it: an idea is not everything)

In addition to this brilliant idea that makes your heart beat like crazy, you need major or minor scale, raise money for the start-up. No matter how innovative is the idea, you do not pass the gate without funding.

Bootstrapping

This means using every resource to have on hand to help you take your business to the next level. Most businesses start out with money provided by the owners themselves, their savings and home equity loans, many also use plastic money (yes, credit cards)

In fact, many start-ups are supported by the TDC. So much so that Google founders Larry Page and Sergey Brin, fully funded their efforts through the use of its TDC. At this point, be very careful, because if you accumulate a huge debt and damages its risk rating, to obtain further funding will be very difficult.

Friends and family

In the earliest stages of your start-up entrepreneurs also tend aa seek money from family, friends, relatives and colleagues. Many start-ups will fail as well. Usually such financing is informal. It is very likely not have to write a business plan in advance, however, and no matter how well-known to investors is prudent to prepare a contract to avoid misunderstandings. Clear accounts preserve friendships.

Banks

If that is difficult to get a loan with these people, because the bank mainly deals exclusively be intermediate, a rate captures deposits, put these on different instruments and all, but few are devoted to study if and indeed provide this much needed money.

Also require that your company has at least two years of activity and require collateral as security. The exception they do with builders or companies involved with expensive equipment like heavy machinery and who already have signed contracts. But most governments especially in Latin America, have agencies to support small and medium enterprises.

Like every government institution, must arm themselves with patience and try to present a good business plan, especially as clear and understandable as possible to give it and may have even to give a guarantee for that.

Grants

If yours is a technology business, belongs to a minority, or is a community of women, is likely to exist in his country agencies that handle budgets funded by entities such as the World Bank, IDB, or any similar entity. Just to compete for that money is uphill, so if you apply and win that can be a guarantee to obtain funds elsewhere.

Angeles

Whenever someone comes along and, with enough money you’re willing to risk on new projects. Often these are former entrepreneurs. That money will also provide experience and can provide useful contacts. Where can you find them? One possibility is to look for places where these people meet, clubs, associations, professional associations or similar where they always are awaiting new businesses to invest.

The bad: they have become more sophisticated so now many are interested in companies that have already started.

Venture Capital

It’s easier than winning the lottery is a bold capitalist invests in building a business and less on the initial phase of the same. However, if your company already has a track record and promises high performance, it’s worth a shot. Your best option is to use the net to find a reference.

Make sure you have a business plan airtight. You also have to be willing to relinquish control over key decisions and to sell their business or having to make an initial public offering seven years of receiving investment.

Customers and suppliers

Some customers may be willing to help finance development of its product, if you customize for them. For suppliers, they may be able to reliable inventory where assured that you will pay for the material on a particular date.

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