How to Raise Money as a Start-up

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How to Raise Money as a Start-up

One day it hits you. The next great idea! The problem is that even if you have the best idea on earth, it takes money to make your vision into a reality. This short guide will explain how to raise money as a start-up so you can launch your company and change the world.

Get Organized

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Nobody is going to give you a cent if you don’t get transform your idea into a plan. The first step is to do your research. Are you sure this is a new idea? Even if it is not new, then you need to be sure you have that something special to stand out from your competitors.

Form a Team

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When we think of names like Steve Jobs, Mark Zuckerberg or Bill Gates, images of solitary genius come to mind. Though they are all geniuses, they each built good teams around them. Know your strengths and weaknesses and build a team accordingly.

Create a Business Plan

startup plan

If you want serious funding, then you are going to have look serious. You need to create a business plan that outlines your goals, the marketplace, challenges you might face and your earnings expectations. After you have put this together into a coherent document, hire a consultant or advisor to review your plan. If you are worried about sharing your details too soon then find a trusted friend or have the individual sign a nondisclosure agreement.

Small Scale Options

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The size of your project will determine how much money you need. If it is fairly small, you may be able to raise enough money from your personal savings and some contributions from your team. Likewise, friends and family may be interested in investing as well.

Getting Bigger

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As the project grows in size you may have to expand outside your contacts. This is when you want to consider applying for a small business loan from the bank. If you credit is in reasonable shape, this is a good option as it will allow you to keep control of the project in your hands.

Should You Crowdfund?

crowdfunding money startup

Crowdfunding has redefined how ideas are launched. A good first step is to search websites like Kickstarter and Indiegogo and search for projects similar to yours. If they are being funded well, then that might be a good option for you. Read our article on How to Crowdfund to find out more!

Going Big: Venture Capital

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Some ideas are too big for family/friend contributions or crowdfunding. This is when you want to start looking for big capital. This is how you can raise a huge amount of cash and truly have the resources to accomplish your project.

Just know, that they don’t hand that kind of cash out easily, and you will have some pretty serious stipulations along with it such as giving up a percentage of your company or a percentage of your profits.

If you have a dream that is ready to be turned into a reality then get started today. Start by getting your plan together then choose one of these great options for how you can get it funded!

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