Funding Your Start-Up Business Ideas

A start-up is a?company?in its early stages, a company developed by entrepreneurs who believe they have identified a gap in the market they can fill.

Many struggle with the amount of funding their start-up requires, as start-ups have high costs and a fast burn rate. This article lists various types of funding, as well as stages of funding, and their pros and cons, as well as offering advice on approaching?investors.

Funding Your Start-Up: Before any business starts to get off the ground, the issue of fundraising needs to be considered.

While some start-ups are able to self-fund entirely from the founders’ personal funds or from investments from friends and family, for most bootstrapping it simply is not an option.

Start-ups are intended to grow quickly, so require a large amount of capital to burn through to maintain that growth until they start accruing profit.

Before you begin your fundraising efforts, make sure you are adequately prepared; you will need to have a compelling idea and product, and to be able to pitch them clearly, concisely and effectively to investors.

Some amount of traction (customer adoption) is desirable as it will prove the product is marketable. Growth of around 10% per week consistently over a number of weeks is ideal. This demonstrates your companies’ viability and encourages investors.

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