How to Fund Your Multi-Million Dollar Idea
Having a great idea is just the first step. Realizing that it could be turned into an empire is the second. For the final step, you must find the answer to this question: “how to fund your multi-million dollar idea?”
Up until this point you’ve played around, turned the idea on each part and dreamed about how it could evolve, but now things have gotten serious, and you’re willing to see your idea take flight.
We’ll tell you how to fund your multi-million dollar idea and where to look for capital, together with the ups and down of each solution!
- A traditional approach: venture capital
Getting your business started with venture capital is common and many companies did it in order to start producing a product or supply a service. A venture capital firm will receive its money back when your business is starting to expand, which helps startups.
- There are a lot of million-dollar companies willing to invest in a good idea
- They’ll provide you with enough money to invest in your business
- Venture capital firms usually invest in startups, so you’ll have to present a product or service that has already been launched on the market
- You’ll probably have to give up on a part of your company in exchange for the cash.
- A safer choice: angel investors
The safest way of funding your multi-million idea is by appealing to angel investments. They will also give you the money to start your own company and thus, act in a similar way to venture capital. Getting money without having to bet your personal finances is always a good thing.
- They won’t ask for a big percentage of your startup
- Even if you’re just at the planning stage, angel investors will still be interested in your idea
- These individual investors won’t give you a large amount of capital
- They’ll still be co-owners of your firm
- A risky investment: self-funding
How to fund your multi-million idea and get to keep 100% of your business? By taking the decision to support your idea fully. This means that either you have the money for financing your company and are willing to risk it, or that you’re considering to take a line of credit and try your luck.
- You’ll have 100% ownership of your company
- All the decisions are yours to take and won’t have to consult investors
- Each gain is yours and yours alone
- In case your idea wasn’t that great, you’ll lose everything you’ve invested
- Taking a loan and applying for bankruptcy will get you in financial troubles
- A slow type funding: crowdfunding
Crowdfunding websites have appeared and gained popularity over the years due to providing startup firms with the means to expand their business. How to fund your multi-million idea with crowdfunding? By offering your products or services afterward.
- You’ll remain the full owner of your business
- The public will pay in exchange for future samples of your products or services
- It takes time to raise enough capital by promising people that you’ll offer them a cheaper product or service sometimes in the future
- You won’t have any indication of “when” or “if” you’ll finally get enough capital to get your business started.
Are you still thinking about how to fund your multi-million idea? Take into consideration the options above and analyze all their advantages and disadvantages. Then, see which one works best for you and your type of business and go for it. There is no success without risks!
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