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Raising Capital To Start Your Company

May 31, 2008
The first capital influx into a start-up enterprise provides the thrust to bring forth the company founder's vision into solid results.

The incongruous fact is that, even though there are many capital providers, at times it's a rare and hard to find item, and even more so for an unproven start up company.

Raising capital is very important to conceive the start-up's operations and to arrive at the point where outside capital can see and feel the progress of the start-up company, realizing the personal financial dangers the company insiders took in getting there.

If the start up company's directors can't provide the required personal assets to devote to the company, capital raising becomes a rocky road to follow.

No doubt it's hard to place ones assets into a new and untested endeavor, although it's regarded as a major step - a rite of passage of sorts - that will convey your belief and dedication to the triumph of your venture. Nothing ventured, nothing gained, sink or swim.

Being in the midst of the creation of your business is a potent inspiration that will amaze you with its force.... Why? Because it's your baby, your creation!

Nevertheless, this is the real question: How do you go about getting the seed money to gear-up your startup until it can raise outside capital? How do you get past the "Hey, great idea!" to possibly raising adequate capital to start operations?

Here are some excellent ways to raise capital:

* Home equity, remove the value in your home and stick into your business.

* Approach family and friends, don't overlook this primary resource. Make sure to get all your agreements in writing and do your best to uphold your end. IMPORTANT: Make sure you ask for loans, don't give up equity. Believe me, you don't want your mother telling you how to run your company!

* Use your credit cards to get all the capital you can. Making the minimum payment will allow you to raise a good amount of capital, a deal when you need it most.

* Sell your possessions. If you have a summer home, or a vintage car, sell them and use the capital to help your start up company.

* Do you have whole life insurance? Borrow from it and put the capital to work for your company.

* What about a 401K? This option applies only if you are working and running your star-up company part time.

All the items mentioned will stretch your resources while raising capital for your start up company, your vision. Your attitude and commitment to raise capital for your startup company will not only inspire you, but will put fire in the belly of all interested investors and they will join you in raising capital for your startup enterprise.

It may be a long, drawn out process to reach the end result. It takes determination, a sound business plan, and a convincing management team if you want to get venture capitalists to even consider your company as a good potential investment.
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For information on going public public without a public shell or a reverse merger, please contact Tiber Creek Corporation at http://www.tcc5.com
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