When it comes to running your own business, the financial side of things can be tough. That is why there are so many entities willing to loan you money. People want you to succeed and they want to make some profit from your venture. Venture capitalists actually do this as their job. They find new companies to invest in, build up, and make interest on. So don’t fret if you think that there are no avenues for your startup company. If you are wondering what they are and where to find them, look no further. Here is a list just for you.
When the local government does not have enough funds allocated into its budget for a particular project, it will often turn to bonds. These are basically IOU’s made up by a private or public group. They are little pieces of paper that cost money and promise future repayment with a certain amount of interest. People like to purchase them because they have a lower risk than stocks most of the time and a higher return that CDs from the bank, most of the time. They are the middle roads to investing to attain wealth.
Government bonds are especially secure because the government has more of an obligatory duty to pay them off. It cannot just declare bankruptcy. Of course, this is never the rout to want to go. You want to succeed in your business and it is actually quite difficult to declare and live with the consequences of bankruptcy.
A good option for any company, and the most prevalent one there is, is applying for investments. Entrepreneurs seek investments all of the time and venture capitalists just love being a part of the action. Just like sharks, they swarm the new feed, looking for any piece to get ahold of with their teeth. So before you enter the dragon’s den of willing, knowledgeable investors, make sure to do your research and know your part. You should already have a few things going for you, including the following.
- Know what your company is worth. Nothing is more of a turn off to investors than someone who appraises his or her company as much more than it is really worth. And when you appraise it too low they will either think you are stupid and fail to tell you this or think you are stupid and tell you so. Either way, you are likely to lose out on valuable cash, which you need now more than ever.
- Know your product’s value and perfect selling point. This means that you need to have sold inventory. Too many people try to gain investment without knowing whether or not their product is a seller. The sharks want to know that they have a good piece of mat before running off with it. Otherwise they could very well lose their investment. Once again, bankruptcy is the dark cloud that looms overhead.
- Be ready to haggle for equity and ownership of the company. Investors want equity more than anything, but some are willing to compromise for cash external of the company or royalties. Both are hard for you to give up because you don’t really know when you get cash and promising a percentage of every sale is scary. It means less money for the company and for you as the CEO.
You have built your company and you don’t want it taken from you in any way. So know what you are worth and turn to either bonds or investments for the best kind of funding for your new startup company and enjoy the ride.