With the economic instability, people have to find ways to come up with more viable source of income. One of these viable means include coming up with a very own company that has high potentials for growth and success. Since not all people have the financial means to do so, the most common option would be getting a startup venture capital.
A startup venture capital refers to the type of private equity that is usually granted to companies and businesses that are related to biotechnology and information and communications technology (ICTs) because these are the fields that have high probabilities of generating income returns.
Venture capitals are common in industries that are new and have high expectations. Before a group or a company gets this, there are so many requirements and processes they have to go through. If your company plans to avail of a startup venture capital, you should be very careful about the business that you are about to build.
Starting a small business
The main key to starting any business is an idea. A good idea can take you and your soon-to-be business to greater heights if you start well with your venture. Come up with an idea, product or service. Put it down on paper. You’re more likely to succeed if you plan. Put down things like name of the business, what resources you need short and long term business and financial goals.
Next is by starting small. Here, the main motto should be: “Plan, plan, plan!” When your idea is fresh and exciting, it’s easy to start without a thought to how it will pan out and all the implications. There’s nothing worse than an uncompleted project. It can completely ruin your confidence.
After that, it is best to chart your way to financial success. Here, you can determine what price do you intend to sell your product or service for, How much will it cost you to produce, Work out a roughly estimated profit remembering to factor in fixed costs like rent, energy etc.
Then, you can check out your competitors and compare the business natures. You can gauge how much are they selling a similar product for and if you can add something to it to make yours different and hence a better price.
The next ideal thing to do is to put down your “Unique Selling Proposition.” Also how are you going to market your product-via newspapers, a website, through word of mouth, The option is yours.
Then, decide what type of business you would like to be — an incorporation, LLC, etc. This is important for tax purposes. Here, you can determine how you’re going to finance your business initially. The bank, venture capitalists, angel investors, SBA grants (government), your own savings are all options.
After which, make your product/s or service/s available to as many customers as possible by using your marketing strategy. It will also pay if you keep a close eye on your running costs and keep them in-line with your projections.
Always remember that for you to be qualified for a startup venture capital, make sure that your company’s nature of business have high chances of growth. Make sure that you get your accounts in order right from the start so it can save you tedious work later.