Starting a new business can be very difficult, especially in today’s economy. Depending on what industry you are getting into, you may be facing additional challenges as well. The restaurant industry, for example, is very competitive and many new restaurants fail within the first three years of business. Unless you are splendidly wealthy, getting a business off the ground requires some, if not a lot, of money and it can be difficult to obtain the necessary funds. This is where capital raising services can help you.
Your options for raising capital are fairly limited though.
Your friends, family and colleagues
Discussing your business plans in-depth with friends, family and business professionals that you know, is one way of raising capital. You can ask them to invest in your business idea, but as with any other capital funding resource, you need to have a solid presentation. This means that you have to do your research, have a professional business plan developed and treat these discussions as a professional – no matter how well you know perspective investors. Although this is not a capital raising service per se, it may yield surprising results.
Again, banks are big businesses that require a lot of background information before they loan out any money. This is the same, whether we are talking about business loans, personal loans, or car loans. The bank is going to vet you thoroughly, which means credit checks and income verification. They will also want to review your business plan/model and they will have many questions for you. You need to be prepared with profit projections, sale strategies and a fair valuation of the business or the product you are offering. Having current market research is also necessary. This is the most generic capital raising service available, but not necessarily one that will be successful. Banks are stingy and may not see your business as a worthwhile risk.
Capital raising services
Third-parties that specialize in raising capital for new businesses are likely your best bet. These capital raising services specialize in helping new businesses access the funds they need to launch successfully. They can point you toward grants that may be suitable for you and give you a leg up in raising the funds you need in a professional manner. Many of these services act as advisors, and can answer any questions you may have about how to begin raising capital, or the resources available for you that you may not have tapped into yet. Do not overlook this option. In fact, this should be one of the first avenues you head down for financial resources, after you invest in yourself.
Scraping together the necessary money to get your new business off the ground is never easy. Between what you sink into the endeavor yourself, and what your family or friends are willing to pitch in, you may still find yourself standing at the precipice of a huge financial gap. Consider using capital raising services that specialize in working with new businesses, before you try getting a bank loan. You may be surprised about what you learn.
- CFO vs Controller: Understanding the Difference For the lay person, there is often a lot of confusion around the differences between...
- CFO Jobs and What Companies are Looking for Responsible for financial planning and forecasting, strategic planning and advising, CFO’s are relied on to...
- Five Things to Consider Before You Open Up a Business Opening up a business is a big challenge. It is not an easy path and...
- What to Know About Offshore Asset Protection People who can be easily identified as successful and wealthy individuals may become targets for...