Tips to raise funding

Where to Look for Startup Funding

Here are some places where you may be more likely to secure the money you need for a new venture.

Creative savings. Carefully analyze all your money needs and think creatively about how you can get things for nothing or at a lower cost. This review may not be as difficult as it sounds. For instance, consider bartering and ways to lower your overhead expenses. Look for ways to outsource tasks since this can convert a fixed expense into a variable one and you'll pay for it only when you make a sale. Accomplishing things without using cash is the same as getting money -- with the advantage of not paying interest or giving up equity.

Angel investors. These backers tend to invest smaller sums and take less equity than venture capitalists and usually make a more meaningful non-cash contribution to your survival and growth, such as advice and introductions to others who can help you.


Partner suppliers and customers.
No equity is involved in these deals, but your objectives are achieved without paying cash. For example, if you have a product that you sell through retailers or work with regular suppliers, make them an exclusive offer, such as a specific time period for free advertising or an agreement to purchase on extended payment terms.

Reinvested profits. Scale back on your plans for quick growth and focus your efforts on organic growth where your profits are reinvested in the business as a substitute for raising capital. It is a slower approach, but it can be more profitable and less of a strain on you and your company's well-being.


Tip number 1 – Create a feasible project

Feasibility study, as long as may be, may not always convince the reader your project is feasible and viable.

A feasible project must show, easily, clearly and simply that your project can generate great sources of incomes, keeping the project safe for the owner and for the investor.

Highlight your potential and abilities to become market leader in your niche.

Use professional experts services company for preparing the Feasibility study or prepare it yourself subordinated to an approved acceptable template.


Tip number 2- No Room for Mistakes

The fact there is no room for mistakes, will not leave you any options for modifying your concept or plan after applying to a financier.

Take into consideration that, it doesn’t matter if it’s a bank, fund or a private investor, the financiers analysts are analyzing tens of applications per day having the immediate instincts to find your mistakes and immediately disqualify the file.

Sometimes, when observing the file, simple mistakes will deny the file from financing, without even giving you any explanation for their negative answer.

Remember, you can’t correct the study, or the strategy chosen when you apply. This can be made only BEFORE you start any application process.

When your file is rejected by a financier, probably, it won’t have the chance to apply again, and if it does, it will probably not have the chance to succeed due to the bad impression that the financier already has about the file.

Summarizing this Tip, prepare your Project file and financial structure BEFORE you apply to the Financiers.


Tip number 3 – strong management

Having a strong project management is crucial for your success.

Actually, one of the lessons taught from the last global crisis was based on weak management structures and the fact that financiers were not putting enough attention to this area when analyzing their chosen projects.

Gathering a strong management team, with relevant years of experience, will make the financiers trust your company and the success of your project.

In case you are a startup company, or located in developing countries where strong management are not very accessible, we may find together creative solutions to create a strong local team backed with some external help.

other tips see on http://futurerating.blogspot.com/2011/03/startups-opportunities.html