| ems that most companies and entrepreneurs wish | | | | early stage of your company, you may source it |
| they could have more of it. Of course, we're talking | | | | from investors. Another route to consider is a |
| about capital. It's the life's blood of any venture, no | | | | merger and acquisition. |
| matter in what way you look at it. Without capital, | | | | Some of these companies will be rich in cash assets |
| your business or company will definitely fail. | | | | that will help your growing company with much |
| It really depends on why you need to raise capital | | | | needed capital. You would also be surprised to find |
| and at what stage your business is in. It will also | | | | that larger corporations look for investment |
| depends on current trends within your industry. | | | | opportunities and therefore becoming strategic |
| You can source capital by various means and here is | | | | investors and corporate venture capitalists. By having |
| a short list of how you can obtain it: | | | | access to some technology that your company |
| 1) If you have a company, you can raise capital by | | | | produces as an example, may definitely spark an |
| going through an IPO (Initial Public Offering) process. | | | | interest with these larger corporations. |
| It's a strategic decision whether you want to take | | | | There are some common mistakes companies and |
| your company through an IPO process and you need | | | | entrepreneurs make and it's helpful to try and avoid |
| to critically assess your company to make sure that | | | | these as much as possible. |
| it will be ready to sell shares to the public. | | | | 1) Do not fall in love with your business plan as this |
| 2) You can use your own sources of funding; credit | | | | will only end in disaster. You need to be more flexible |
| cards, loans, 401k and home equity loans etc. If | | | | when approaching investors or banks. |
| investors need to take a risk in your company, so | | | | 2) You need to think big and move fast. Investors |
| should you. | | | | would expect that you know your businesses good |
| 3) If you have a good track record and good | | | | points and potential bad points and you need to build |
| collateral, you can also apply for a larger scale | | | | on an infrastructure that can respond to rapid growth |
| commercial loan. | | | | in a small niche within the market. |
| 4) If you have a track record of a very hot industry, | | | | 3) Never forget to manage your business. Do not let |
| you can try to apply for institutional venture-capital | | | | raising capital consume your every thought. Continue |
| market. They only make a handful of deals a year | | | | with your daily business goals and everything else will |
| even though hundreds of deals get pitched to them | | | | fall into place eventually. |
| in any given year. | | | | 4) A few other areas of consideration are, you need |
| 5) You can try to approach investor and syndicate | | | | a strong management team and investors need to |
| groups, or a wealthy relation to help you out. | | | | see that, as well as that your business plan should be |
| You also get several sources of debt financing. | | | | short, concise and to the point. Here it would be |
| These include commercial banks, commercial finance | | | | recommended to sit down with a proper 'Going Public' |
| companies, state and local government lending | | | | firm to assess your needs and see if they can help |
| programs, trade credit and consortium's etc. Other | | | | with the capital you need. It will make things much |
| ways, are to source it through equity capital. At an | | | | easier in the long run to get proper help in this area. |