Startups

Startup: how to attract investment for business development?

If you are a startup or a person with an idea and you ask yourself the question: "where can I get the money?" Let's figure out through what channels money can come to you.

There are three main ways to get money for your business:

1. Contributions of founders, shareholders to the authorized capital of the company or crediting. That is, money that comes from the subjects as a contribution from the side of the founder, shareholder, or else as a debt that will need to be paid and, most likely, an additional interest will be paid.
2. If a person enters your business, as a co-founder, and puts his money into the authorized capital, then he shares all the risks with you. If tomorrow you go bankrupt, then he lost all this money. If you took out money on credit, then you are obliged to return this money.
These are two basic tools that any company uses.
If you are a beginner entrepreneur, and you do not have enough funds of your own, then you need to decide which of these channels you will use to raise funds.

Remember that by admitting a person to the authorized capital of a company, you bond yourself with him for many years.



This person will be with you for as long as your company will exist. He will co-founder with you. It is important to evaluate not the size of the amount that this person is ready to invest about, but how comfortable you are with this person. What pitfalls and risks do you see in your relationship with this person? And how much this person will intellectually enhance your project. Does he have more experience. This is what is called smart money, smart money. Money that goes into your business and strengthens you not only in terms of finances, but also in terms of getting a strong, intelligent partner. Think well, are you ready to go with this person for a long time? There will be practically no turning back. Even if a person says to you: “Yes, I’ll just invest money, and I will not participate” Believe me, if a person has invested his money, especially if it is a significant amount, he will think about them, he will worry about them. Carefully read the scenario with such an investor's investment. That there is also a negative scenario. Very often an investor says: “Here I am investing money. I am your co-founder. But if it doesn’t work, then you’ll return the money to me. ” This is a very muddy scheme. Because a person is introduced to you as a co-founder, but at the same time wants to make this investment for himself without risks. It is very important to immediately explain that if it suddenly does not work, then the investor loses this money, they are risky.
Another scenario is if you take risks and attract a loan. No matter how you believe in your startup, taking out a loan is very risky. Since this is not a running business. So measure what will happen to your life if you lose this money? If you understand that you will tie yourself up to Kabbalah for 5-7 years on the return of this money. You will be forced to plow in order to pay this amount.
Look for a way to rock your business with a minimum investment. The ideal business startup scenario is when you start attracting customers. And by actually financing the growth with the money you start earning. Create a minimal working model.



Always ask yourself the question: Can I do without an investor? When you attract an investor, you will negotiate shares. If you only have an idea and the investor has money. Then you will receive a very small part of the share in this business. Although this is your idea. But, if you can already start and rock this business, then your share will increase significantly! Because you are attracting finance to an already operating business.
3. Grants. Nowadays, there are many organizations that are aimed at supporting entrepreneurship. Aimed at stimulating the growth of startups. The grant is a donation.
Register your startup on our portal! Find sponsors! Achieve your goals! Develop entrepreneurship in Ukraine!
 
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