Photo Credit: Philippe Put/Flickr
For the entrepreneur, launching a business is often a Herculean challenge due to the lack of available startup capital available. Big cities are often a source of this precious funding: a study by the Atlantic on top locations for sources of venture pointed to major cities including: San Francisco, Boston, New York, Los Angeles, San Diego, Seattle, Austin, Chicago and Washington, D.C. And while this is great if you happen to live in these cities, many entrepreneurs may not live in these areas and may be reluctant to relocate for the sake of a startup.
Michael Howse, an executive board member of the UCLA Venture Capital Fund writing for Entrepreneur Magazine, points to several ways that startup companies can seek crucial startup funding. Howse points to factors that can be valuable for those outside of big cities: (1) networking locally; (2) pursuing crowdfunding opportunities; (3) seeking the guidance of an investment firm; and (4) having a clear concept of how much funding will be needed for a successful launch of a startup.
This blog has already written about some of the benefits of crowdfunding, as well as some of the drawbacks associated with it. Crowdfunding websites like Kickstarter and AngelList are open as potential options for those seeking startup funds. This blog too, has commented on the benefits of networking, pointing to professional networking sites like LinkedIn as being a way to establish a network in the local community with other business leaders.
Howse points to the importance of knowing exactly how much money will be needed for a startup. “Have a financial plan so it’s clear the amount of money needed from an investor. This will also help to set expectations about what can be achieved by the company and in what time frame,” said Howse.
Howse also points out that while investment firms bring a lot of benefits to a startup venture, it’s also important to consider what they will expect. “Remember a venture firm will most likely request a seat on the startup’s board of directors as a condition of investment. This person will spend a lot of time with the startup. Be just as careful in selecting the firm and individual partner as when selecting friends,” notes Howse.
Why go with an investment firm that you’re not sure is reliable or trustworthy? Capital Solutions, Inc. provides reliable, affordable, invoice factoring to provide a quick cash flow to expand your business.
Capital Solutions can provide quick capital for businesses hoping to pursue smart growth. Eighty to ninety percent (80-90%) of an invoice or purchase order may be provided by Capital Solutions to business owners as a cash advance prior to payment by the customer. The remaining ten to twenty percent (10-20%) is held in reserve with the factor. When the payment is received, the factor releases the reserve less the charges incurred back to the company.
For more information on any of the financing options offered by Capital Solutions, Inc., call 1-800-901-3299 or click on the Contact Us tab and fill out the necessary information.
