One of the most valuable skills in business is the ability to open it without investing your own money. Many entrepreneurs write a business plan and think about how to attract investment in a startup and not spend years on it.
In some cases, there are simply no native resources, and in some cases, third-party capital is attracted to accelerate growth. At the beginning of the project, the money goes towards the launch of the first sales and tests. In such cases, it is quite difficult to get a loan: due to increased risks, banks are not sure that the borrower will return the money. In this case, the entrepreneur can only look for other options. About them – in this article.
Where to look for investments
So if your project is at an early stage, there are several different sources of funding.
FFF, meaning family, friends and fools
In the original, the phrase sounds like “family, friends, fools”. A close circle of acquaintances can help and lend if they believe in your idea. Don't forget about the risk of ruining the relationship and keep in mind that debt must be paid no matter how close you are.
private investor
Contact a private investor. They often fund startups in exchange for a stake in the company. He usually earns by reselling his stake in later stages, that is, after the company grows. In some cases, the investor does not count on the growth of the shares, but on a part of the company's profits.
business incubators
In other words, accelerators. They offer training programs for entrepreneurs, help them understand the market situation and even find their first customers. It is important that they organize events where they present potential investors and partners.
subsidies
Funding from state or commercial organizations can be obtained by passing the competition. You will need to be accountable for the money received, i.e. provide reports on how the money is spent. To receive a scholarship, you need to prepare a good business plan and apply for a contest.
Crowdfunding platforms
Crowdfunding is a method of obtaining investments from a large number of individuals. They fund your startup and, in exchange, you give them opportunities: for example, you give them free use of the service. In some cases, the investor acquires a stake in the company; in others, he simply receives a postcard.
That is all! Develop financial thinking with Ilya Sitnov. Subscribe to our newsletter here and on Yandex.Zen so you don't miss out on useful materials.