How can we start raising capital to build our company?
Depending on the amount of capital that we can raise, I believe is how we will start. We estimate we will need about M for a good solid startup but even with 0K we might cover our monthly payments with our monthly cashflows. My partner and I both agree we would like at the most 1/3 of assets financed by debt. The company creates solar energy. We really hope to establish a good business base and expect to already see positive net income within the first two years. We’re talking of a company of under 10 employees. 1-2 engineers, 3 technicians in the assembly line, 2 service and installation specialists, 2-3 sales people, and myself in marketing and strategic management. Any other details you might need please message me. I am somewhat new to starting businesses but I have a huge desire to learn. I have seen businesses in the making but never actually been part of one. Thanks in advance.
7 Responses to “How can we start raising capital to build our company?”
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Lots of research is always good. I think you need to meet with a few financial institutions and show them your business plan and try to find financing that way. Also, it might be good to get a major business to help with the funding of your company and research.
Do you have the $300k or is that what you need to raise. If possible, start your business on a smaller scale and ease your way into the market. Otherwise, you are looking at cash down (home mortgage and savings etc), loaned funds or additional investors. Probably you want silent investors. There are investment clubs all over, but you need to have all your ducks in a row and answer serious questions from experienced investors.
you need to be working with a banker. They may be willing to finance shipments of goods etc, but don’t wait until you are in trouble.
But, one word of advise on Solar, the market may seem ripe, but local demand can still fluxuate, and pv market is driven by shortages. Do some serious failure analysis and be ready to deal with these worse case scenarios. Another good reason to hook up with the bank.
I’m gonna be really controversial here…You don’t need capitol to start a business. Please purchase and read "Acres of Diamonds" and you’ll see exactly how easy and doable it is.
There’s a link to the bookstore on this page
http://achiever.vitamark.com
top left, click on "shopping" and come down to "bookstore" then at bookstore "Ten Life Changing Classics"
Shopping>Bookstore-Ten LIfe Changing Classics
That is good that your thinking now on the direction you want to go with the business. However, beware, your direction and biz plan will probably change a bit during each stage of your startup.
For instance, Adobe was originally going to be like a Kinkos…Good thing they didn’t stick with that business plan!
I’m not sure what type of business you are planning on starting with an assembly line, engineers, and only 10 employees but I know for most software/internet companies big-time investors want to physically see and try a prototype of what they are investing in.
So my thought is to maybe seek what is called "Angel Funding" or "Seed Funding." It is usually in the thousands, not the millions but it may be enough to get you started in building a prototype to show to the big investors in, say, a company of 3-5. After you get the money that you talked of in your post, then you can worry about mass producing the product (I assume product) and growing your company to 10+.
Refer to http://selfmade.eliotdill.com for some useful advice and links to help you along the way.
I hope this helps. Good luck!
I thought the sun created solar energy. Are you sure about this company?
The first thing you need to do is your proposed job.."strategic management". Why don’t you also be a sales person or one of the other positions. What will your partner be doing? Cut out as many employees as you can until they become necessary. I am assuming you are already in the business so you must already know of potential clients who would love a discount on your products. For a fee, give them discounts for money upfront. Your stock would be a bonus for them. You have to get out and sell your idea. There may even be Gov’t grants for this type of business, especially with the "global warming" issues of late. The best advice I could give you though is: If you want to start a business, don’t ask yahoo answers how to raise the money. If you or your partner don’t already know, bail now before you lose your investment and go almost 300k in debt.
What would you know, your page came up first in Google.
Just what I searched for.