April 20, 2010
If you are a young entrepreneur, you are starting up your company and have big ideas, you may have already found out that raising seed capital can be quite the challenge. Are you the type of entrepreneur who likes to dream until all your neighbors think youâ€™re crazy? Well, donâ€™t let them get you down! Youâ€™re not crazy, quite the contrary. You are an ambitious entrepreneur with a healthy entrepreneurial spirit.
You might not necessarily get the capital you need from an investor right away. You will need to raise your own capital to get things started and then investors might start looking at you more seriously. Take Google, for example. They probably maxed out all their credit cards to start their search engine, but look at them now! They are a multibillion dollar business. The point I am trying to make is that entrepreneurs, like you, are innovative by nature and you need to promote your idea through hard work. This means that you might need to work two or three jobs to raise the initial capital needed to start building your dream.
What should you do in order to attract investors? Well, investors like someone who is serious and who can produce a good ROI or return on investments. You need to prove yourself to investors. You need to prove that you can do it. The fact is that most entrepreneurs start out by putting in their own equity and getting a bit of help from friends and family. Some entrepreneurs will even take some small loans to help fund the initial growth of their company. There is much to do to establish a company and make it attractive to investors.
First, you need to do your homework and you might need to raise capital for your homework. Along with purchasing the proper real estate and equipment to establish your corporate headquarters, you need to do extensive market research to see how good your product will fare in the market. This is very important. Market research can be costly, but itâ€™s well worth the price. Market research can also be the precursor of the marketing campaign for your product. For example, if you are planning to be in the food industry and want to prepare a processed food that is unique and differs greatly from all the other products of its type, you might want to think about having samples given to the public and have them answer a questionnaire about your product so you can gather data on their opinions. You can tally all this data into a market survey to find out what the general public thinks about your product. If this data shows a demand, you can have a good argument for your prospective investors to take up your opportunity.
There are many different ways you can raise seed capital to get your company prepared for seeking angel or venture capital for your company. The key is to be patient and prepare well, so that you will have a better chance to win over the right investor for your company.
All the best, and good luck!
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