I’m in the planning phase of launching my first business. I’ve already received a tonne of great wisdom from FS members and was hoping someone could share their experience on my next question…
I’ve been working with a business consultant who I know and trust and have a clear understanding of the kind of capital I’ll need in Year 1. My question for you is how did you fund your first venture? Why did you choose the funding option you did? Did it turn out to be the right decision? And were there any options you were glad you avoided?
For the sake of discussion, let’s say I’m trying to secure an additional $30k.
How exciting for you, to start your first business!
My funding for my business had always been low, and I’ve always made many times my investment back many folds..
$30k, are you able to get hold of angel investors, they have some startup fundings of around $20k, in return for a percentage of your profit…
However if you had already invest a lot of money into your business, then it might not be a good option in the long run.
I’m guessing it might only be a good option if $20k is all you needed in order to make millions… don’t think it’d be worth it for a cafe.
… I mean, imagine having to share 10%-30% of your profit each month just from $20k funding isn’t worth it at all..
Perhaps what you’re lacking here is effective planning, you need to figure out what is worth your risk, there are many options: bank loans, angel investors, friends and relatives, even fundraisings or through Kickstarter.
Only you can decide what’s best, and what risk levels you’re willing to take.