Only your loved ones, friends, government authorities and fools disregard basic funding suggestions. These costs have evolved as time passes because they reflect the expense of helping the foolish find the foolish. To raise money, you need a short, enticing executive summary and a credible business plan. 15,000. Unless you are a business article writer, cutting costs by doing it yourself is a blunder usually. Professionals shall do a better job of organizing and present your vision.
You should establish your marketplace before you prepare any business plan. Investors, lenders and government authorities are motivated by different goals and thus your business plan must suggest to them that funding your organization allows them to reach their goal. If you are seeking funding for more than one of these three groups, your business plan should be written differently for every potential funding group.
Lenders expect one to have collateral (assets) that ensures the repayment of the business loan principal plus some source of confident income to settle the debt. Theoretically, if you default on your business loan, lenders recover their principal by selling the pledged guarantee. The lenders’ goal is to have little to no drawback risk in the loan. If you cannot show a credible means of repaying the business loan, you won’t get the loan.
Lenders don’t generate income on defaulted loans. At best, they recover their risk capital from the sale of the guarantee. Most governments’ mantra is to create local jobs to ensure politics stability. While requirements as to terms and industries vary, governments would like multinational companies with markets beyond your government’s borders for goods made by their local workers. In case your business plan reflects this strategy, most governments will give you half the needed financing in grants or about 75% of the needed financing as low interest loans.
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If you are an exclusive U.S. Startup Company, seeking funding from an American CAPITAL RAISING Firm, your odds of success are about one-in-ten thousand. 1 million in risk capital. Often, they will increase funding, after they have made their initial investment in your business. Your company plan should show near-term positive cashflow with high profit margins and an experienced and credible management team.
The VC Firm will need at least 50% equity in your business. If you’re an exclusive non-U.S. Startup Company, seeking funding from an American Venture Capital Firm, your odds of success are about one-in-twenty-five thousand. Your chances somewhat improve seeking private company funding from American Angel (Accredited) Investors. However, finding them is difficult without using financial brokers. You can certainly spend tens of thousands of dollars seeking traders for your private company before you realize that the odds are strongly against your success. For most private startup companies the search for money is fruitless.