Securing the funding you need to support your new business
If you've got a great idea for a new company, it can be tempting to hit the ground running and start doing business right away. You probably feel an urge to do a little bit of everything – developing your product, marketing your brand, hiring employees and, ultimately, making sales.
Before you can dive headfirst into a new business, you'll need to have funding on your side.
First things first, though. Before you can dive headfirst into a new business, you'll need to have funding on your side. Unless you're independently wealthy, you probably don't have tens of thousands of dollars lying around to support your brand new startup. This means you'll have get creative about how you finance your project.
Luckily, there are a few options out there.
What sort of funding are you seeking?
When you've got an idea for a new business, figuring out the intricacies of copyright law in Australia is far from your only challenge. Getting capital is a major objective as well. According to Business Queensland, there are a couple of different ways to obtain financing – there's equity finance, where you sell shares of your company, and debt finance, in which you borrow money and pay it back.
Your choice will depend on the parameters of your business. Do you need to have total control over the future, or are you willing to sell some equity? Will you have the cash flow to repay debts if you borrow money? These are key things to figure out.
Building relationships with financiers
Whatever route you go for obtaining funding, you'll need to build relationships with the key people in charge of endowing your business with cash. Business Insider recommends only doing business with people if you can develop a strong rapport with them, both personally and professionally.
James Wakefield, co-founder of InStitchu, told the news source that the "beer test" is a great way of gauging this. If you have a financial partner with whom you can comfortably sit down and have a beer after work, chances are you can build a strong working relationship. Otherwise, you might have to go another route.
Alder IP can set up fund raising agreements
If you've scoured the world and can't quite seem to find the right financial partner to drive your company's success, there is some good news still. By connecting with Alder IP, you may be able to set up fund raising agreements to help you get the cash you need.
At Alder IP, we do a lot more than just handle patent registration in Sydney. We offer a wide range of business services, including help with funding. Contact us if we could be of help to your business.