One of the major setbacks a start-up founder experiences before launching a start-up, is funding.
One of the major setbacks a start-up founder experiences before launching a start-up, is funding.
Be it selling a product to an investor or selling a product to the client, raising funds for your start-up, your product is always evaluated with a brutal eye. And to add to the harsh reality of things, markets are generally unforgiving in this regard.
Though your first break always the greatest gig for you, there are a few things you need to keep in mind before you decide to accept funds from an investor/client.
Have a co-founder
The more the number of responsibilities you have, more occupied you are. There could be a number of reasons for you not being able to bag an investor or raise funds for your start-up. The thought of running a business is thrilling. But over the time it becomes mentally and physically challenging. With a co-founder/founders you would be able to focus more on raising funds and your co-founder/founders on operations, or vice versa.
Influencers
Being influenced by the right person or mentor helps you take care of the risks involved in raising funds for your company. Though there are no rules or facts to choose a mentor for yourself, your mentor or influencer should be someone or something that matches your attitude and frequency. Your conception and idea for funding should be influenced by something that you believe in and NOT what you’re made to.
Market conditions
If you’re into a business that appeals to every age group or affects the daily life of consumers in one way or the other, raising funds may not be a struggle for you. If not, you may want to check the demand of products in your industry and analyse your marketing methods, so as to serve your best on the platter.
Family funds
Not many families are supportive of the decision to quit a full time, high paying job to pursue what you want to. Funds to support your start up may not be applicable in such cases. However, for those whose business are supported by family funds in the early phase, it’s imperative that there will be a breakeven point, yet your peers should be okay with investing in your start up for quite some time. After all you won’t just receive a meteoric rise as soon as you enter the market.
Funding is one of the biggest challenges an entrepreneur faces while launching a start-up. A smooth take off involves appropriate funding and marketing techniques.
