The number one venture capital financing tip is to know your business. To figure out how much venture capital you’ll be needing for your start up, you need to ask yourself some questions first. What kind of business is yours? Do you want to eventually expand your start-up business into a high-impact, high-profit industry? If so, as Jones states, “you’re not going to be your own boss for long.” Being your own boss, however, may not be on your list of priorities; you may be looking to start the next Big Enterprise. If so, you’re going to need a whole lot of venture capital for your start-up business.
If your goals are more modest and you envision the future of your start-up business as becoming a well-respected business within your region or community, then you’ll be approaching different investors with different figures than the entrepreneur looking to expand. First off, decide which camp you belong to, as this will affect your business model, as well as how much venture capital your will require for your start-up business. How big do you want to go?
One of the best ways to find investors is to network with other business professionals and work with capital raising services. So, whatever your start-up business goals are, start talking to people! While there are many internet and crowd-funding platforms that can help you raise venture capital for your start-up business (and these are useful tools), the best way to find investors is still word-of-mouth. If you get people excited about your start-up business, you’ll get people talking about it! The more people are excited, the easier time you’ll have finding investors who are willing to back you with the venture capital your start-up business needs. And don’t be afraid of rejection. Starting a business requires patience, and discouragement is part of the game. While you may hear a lot of “no’s,” if you keep working and have patience, eventually someone will say “yes.” By following this start-up venture capital financing tip, doors of opportunity may start opening for you sooner than you think! And don’t forget the old saying: Whenever a door closes, a window opens.
Listen to Advice
There are many successful and resourceful business people in this world, and many of them are eager to share their knowledge and venture capital (www.forbes.com/sites/ericwagner/2013/01/09/12-tips-on-raising-venture-capital-for-your-startup/) financing tips with new entrepreneurs and start-up business owners. Seek their advice! And when you get it, listen to it, even if you don’t end up using it in the long-run. Know your business model, but don’t be afraid to make alterations to it, especially if someone offers you great advice. If you’re willing to be flexible and listen to other people’s suggestions, people are more likely to want to help you out, whether they introduce you to potential investors or offer to invest some venture business capital into your start-up business themselves. And don’t be afraid to ask for help! Even “self-made” men and women have had help along the way.
The Right Investor
Another start-up business venture capital financing tip is to remember that there is a difference between an investor and a good investor. Some people will promise to invest venture capital into a start-up business, but won’t follow through; others will invest money, but will want to take too much control of your business in ways that you are not comfortable with. Research any and all potential investors and once you enter into an agreement with the right investor or investors, make sure the terms of that agreement are crystal clear and are understood by both sides of the party.
Starting a business is hard work, but it should also be exciting and enjoyable. This is the most important start-up business venture capital financing tip to remember: work hard, but don’t forget to have fun! Finding venture capital financing for your start-up business will require a lot of patience, diligence and hard work, but you are also going to meet many interesting people! Enjoy the process.
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