Getting Over Money Matters
Funding for your startup has to be one of the main “problems” associated with starting a business. Almost every alternate entrepreneur is worried sick about funding and investments. What concerns potential investors, however, is the money making ability of the product or service that the entrepreneur is getting him to invest. Now, one of the main things you need to keep in mind while looking for funding is that investment does not necessarily mean that you are on your way to a successful startup.
Startup Funding – Raising Funds Does Not Mean You’ve Made It
A lot of entrepreneurs are extremely kicked up about starting a company that has potential for a lot of investment. Many a times, entrepreneurs are mislead to believe that it’s all about raising the funds and once that’s done, everything else will be fine. But that is not necessarily true. Money management is the key to running a business successfully, and unless you’ve learnt to make something big out of what little you have, you’re not going to go as far as what people expect you to go with a lot of money backing you up. While “creating something big” from a small self funded investment is challenging, you do not have to be profitable to be a good business to invest in. Big could be anything from a specific market demographic of acquired customers (that other companies would soon be interested to take over), a database of information of users, internet traffic or even an employee base that does a great job!
Credit Crunch – You’re Stuck In Loans
If you’ve got a home loan to pay, are saving up for your kids’ tuition fee or are still paying monthly installments for things you bought a few years back- save your time and drop the thought – temporarily. That’s right, loans can always be repaid, credit card debts can be settled and your stuff can be paid off for (unless maybe it’s a yacht). What it’s going to cost you however, is time. And if you honestly believe you’ve got a great idea, you are sure to know for a fact that time is of the utmost importance- for, the further you delay the launch of your idea, the more the chances that someone else might do it. This is one period of time that you really need to stick with your job. If you’ve refined your idea in its pre-startup phase enough, then go ahead and get another job to bring in some more income to help pay off your loans and debt faster. Safeguard your family financially first, and then take a calculated risk into entrepreneurship.
Although it may sound like an impossible feat to get out of one financial spot and get into another risky investment, you’re going to have to try and approach your situation differently if you want to get anywhere. There are a lot of entrepreneurs who started up and worked on their ideas during the day and worked shifts at night with other companies to fund their ideas themselves. This not only proves that you’re willing to take the steps necessary to take your idea to execution, but also sets the tone for the seriousness of your ambition. There are other things you can do too- take a bank loan, try and get some social funding from the three Fs (Friends, Family and Fools), attempt to commercialize your product.