Tips to Get Venture Capital

Jan

author Business, Finance 2012-01-17

One important factor that is required to open a business is capital. Capital needed for businesses is usually divided into three: First Capital Investment, Working Capital, and Capital Operations. But after knowing this, some people even more dizzy. “Calculating capital does indeed easy. The problem now is, how to do so capital can be collected? “So maybe you’re thinking.

This discussion is interesting, because many people have trouble raise capital. For example, if someone wants to open a laundry business with has its own washing machine, and he needed capital funds amounting to 20 million, while its own funds only 3 million, which he could raise capital?

There are three ways to raise capital:

1. Own capital
First obviously, if you want to open a business, you can use their own capital. How can the taking of deposits that you have now, either from savings or deposit, or by selling assets you have. For example, many people who sell the bike to be used as venture capital, or sell jewelry owned.

Selling goods to increase business capital are common. Most importantly, do not feel too dear to sell some of your assets to increase business capital. For example, if you do not have the money to venture capital and have to sell your jewelry, so sell it. Later when your efforts are successful, you could always buy more jewelry the better. Yes, no?

2. Borrow
Borrowing money for venture capital is also often done. With borrowing, businesses often do you dream can come true faster. This is better than waiting until the accumulated capital. Only, because the capital that you get to borrow, you really should pay attention to cash flow. This is because you would have to return the money you borrow. Whether the return on a monthly, 6 monthly, or maybe years.

In terms of borrowing, that many people are often too focused on how they can get a loan, but do not think about what they can do to return the loan. So, when borrowed, try to figure out how you can return the loan.

The tip, when you think of the way, do not be too optimistic that the income from your business can certainly direct large first months. If necessary, make a worst case estimate. From a pessimistic estimate, you’ll be able to assess whether the returns are going to do later can be smooth or not.

3. Cooperation
Instead you use your own funds all, or than you borrow, why not try to cooperate with others? With a long term cooperation, then the risk of your business can be smaller because they have shared with your friends. But, the benefits you get of course also be divided. That is, the risk is shared, the benefits must also be divided.

Now the problem, are there people who want to cooperation with you? That depends on whether you can as well offer a reasonable profit on the business you have to offer. However, the offer is not enough profit you know. You should also be able to provide a good approximation, not proud of the people you want to cooperation.

In addition, whenever possible, the explanation you gave also must be reasonable, sober, and not merely describe the benefits to people who want to get the cooperation.