Easy Ways Young Entrepreneurs Can Finance Business Ideas

An entrepreneur at some point tries to find a financial investor to start his venture or eventually scale his business.  Although finding a long-term investor is an art and takes a long time, many rely on short term investors who can initially fund them.

Many graduates from top tech and management institutes build a strong network while studying their course and rely on references and recommendations to get businesses running. But this is not the case all the time! Eventually, this trend will fail, and business executives will have to look elsewhere for funds.

This blog is aimed at understanding different investors that a business can seek investment. These sources are reliable and mainly focus on working long term with a business. Their reasons are reasonable, asks are not daunting and they also come along with many safety nets in case there are necks online. You know what we mean right?

Here is a list of our top investment sources:

Venture Capitalists

Two words can describe the mindset of venture capitalists; Experimentalists and innovators.

These are basically a bunch of people who own a registered venture capitalist firm and are looking to invest in a potential idea. They look for strong management teams, powerful ideas, passionate people willing to push boundaries and business that has a large potential in the market. It could be a product of a service; whatever it is, it should be uniquely projected and rightly pitched.

Some investors begin by releasing a minimal amount of financial funds to check if the company is serious about the idea they believe in. Eventually, they proceed to invest a further and long time. Sequoia Capital is one such VC firm that does this.

Family Connections

This can be one of the most trusted sources that one can rely on. If you have siblings who are smart enough to understand your idea and would want to invest in it, then give it a shot. Not just siblings, but anyone among family and friends would also do. Discuss with them about all possible things; Probably, this lot will be your number one critic. If you win over them and manage to find investment, then you should know you are on the right track.

 

Angel Investors

These are individual people who are rich and have loads and loads of money to spare!

They are people with specific interests some of which includes social platforms, aviation, cosmetics, gaming, fashion, retail and so on. Find out which set of the audience is likely to understand and endorse your product. Further find out who the angel investors are, who have been investing in similar products over the years. Write emails to them, their companies, their review teams and get a portfolio created about your product. If you do all this right, the chances of you landing up a major deal are high.

Banks – The traditional way

If you have already made some money and are looking to use that as some sort of surety for the loan you are about to ask, then go ahead! This may not be a bad move after all.

Although many offers might be extremely tempting to use, make sure to understand the terms and conditions proposed, the limits, extensions, and other contract specific clauses. Do not land up in a suit or worse case, lose all your assets placed as surety

Companies

Big organizations who have spent ample amount of time in the industry such as Microsoft, Google, SAP Labs, and others have start-up accelerator programs hosted and run within their campuses. They have a systematic approach to reach out to budding entrepreneurs.

 

The budget may not be enough for all, but a good idea will definitely manage to bag some money that helps to start with. This corporate accelerator’s ecosystem may be a bit tricky in a way of how mentors might choose to lure you to sell the idea to their respective companies to push their innovation and drive businesses. But be sure to have all parameters equally accounted for to make the right decision.

On an end note:

Financing has always been one of the toughest things to achieve and maintain as an entrepreneur. It’s one of those filter stages where a lot of people return to their bases without many hopes. A lot can happen with the right kind of funding.

If you are someone looking for an investor/investing option, then start looking for one online. By the time you have your idea in place, you will know what to choose from. To know more, please do visit Viewham Blog.

 

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