Though venture capital and other investments can get your company to go global, sometimes it can be hard to find an investor to fund your venture, especially when it’s still on the drawing board. In many cases, before finding venture or angel capital, many people often turn to unique and different ways to raise the needed seed capital for their business.
Sweat Equity to Raise Seed Capital
One of the ways to raise the seed capital you need to start your business is the old fashioned way of sweat equity, or hard work. The fact is that many entrepreneurs worked very hard and placed the vast majority of their paycheck into their venture. This can still work today, even in an environment where jobs may be hard to come by. Before you think that this might be for you, you need to ask yourself the following questions:
A) What is your business and how much capital do you need to get started? This is very important. Obviously, you would be living in dreamland if you think that your salary from frying hamburgers at your local McDonald’s is going to immediately turn your venture into a multimillion dollar international company. It won’t, at least not yet. What it will do, however, is to allow you to start raising the necessary capital to get the basic things you need to get started. Though working at a fast food joint may not be the best way to raise capital, try finding an entry level job in the field of your business. This way you can get a higher wage and gain the necessary experience to build a successful company.
B) Keep good rapport with your employers. Wherever you work, keep a good rapport with your employers. You never know what your bosses can do for you. They may even be able to get you into contact with other sources of funding, such as angel investors.
C) As you work, save your money and spend the majority of your paycheck on needed equipment and real estate. Allow your paychecks to accumulate and then purchase the necessary equipment needed to start developing and manufacturing your product. Likewise, look into buying the necessary real estate for your business, such as office space and manufacturing facilities.
Using Your Website to Raise Capital
The internet allowed some entrepreneurs to be very creative when it comes to raising capital for their businesses. One entrepreneur set up his website with a simple product to encourage people to donate in order to raise seed capital for his company. After doing this, he got the attention of an angel investor who later introduced him to more serious formal investors. His company is now one of the Fortune 500 companies and is worth several billions of dollars. It is very easy to get a website that is designed for an e-commerce site with a PayPal checkout that accepts credit cards.
How Can You Raise Seed Capital for a Business Overseas with Part-Time and Full-Time Jobs
Are you one of those who dream about living the wonderful life of an expat and want to build a company overseas to keep you sustained for the rest of your life? Well, you can do that, depending on the country you choose to live in. The fact is that there are many developing countries all over the world, where building a business can be easy and affordable for Westerners. The fact is that in many of these countries, many of the locals do come to richer countries, such as the United States, Canada, and Europe to do just that. They work a while and use the money they earned to build a business. The question is how can you do this?
A) Research the country you want to invest in. This is very important. Every foreign country is different from all others and has different laws. You want to know the laws of that country and keep up to date with current events. The slightest change can spark a revolution or other political unrest, causing you to lose everything, if you are not careful.
B) The prices in the country of investment vs. US and European prices - know the difference! This is also very important. Find out where you can get things affordably from. While doing this, also look at trends. What is forecasted to go up? What are the moments you can take advantage of, etc. When you invest, you want to invest in a business that will give you a good profit.
C) Get to know someone in that country who can be a trustworthy partner. This is very important! You want to be able to know someone who you can trust and will not hide or spend your money improperly. The truth is that when you invest in any foreign country, and you are not there, you may have to transfer money to a person who can purchase on your behalf. Furthermore, your partner who lives in that country should have good business knowledge and also to know how business is done in that country.
D) Work and send. Once you developed a good partnership with someone in the country of your choice, work and send what you can to purchase real estate, equipment, etc. In some countries, you can raise enough seed capital to get in half the time of what you can get in the US.
The fact is that there are many entrepreneurs who are knowledgeable about a foreign country where things can be obtained cheaply and are projected to rise in value and they invest. Real estate is always a good investment, because real estate always goes up in value. Furthermore, if real estate is low, you can also purchase other equipment at a low cost. Many people would make great profits doing this if they invested correctly.
One way for an entrepreneur who may not have much by the standards of the US to make it big in a developing country is by working in the US or his home country in the west like immigrants from that country do. This allows him to raise the necessary capital to buy the things he needs to make a profit. Study the trends! What is likely to go up? Invest in what is likely to go up and you might find good results.
How to Convince People Who are not Investors to Fund Your Venture
For those of you who are looking for an easier way to raise capital for your venture, you can convince people to help fund it. First, try your friends or family. If you have that wealthy relative, ask him! One successful entrepreneur used marketing techniques and a coarse product prototype to convince people to give him money to build his company. After a while, he found an angel investor who later got him into contact with formal investors. His company is now a multi-million dollar company.