Having access to capital can be considered one of the main challenges of putting up one’s own business. Capital is the amount of money needed for various business activities, and it can come from numerous sources – if one knows where to properly look.
The first step to raising capital is to learn how to pitch successfully and as often as possible. If one goes after capital investment from an investor, more capital for the business venture can be expected. Practice this pitch well. If necessary, find a friend who can help improve and refine it. Methods such as a newsletter will get one’s message across and help build rapport with potential investors over time.
Now, how can one have access to capital? Start with family and close friends, offering options that include payment with interest or partnership in the venture. Operate based on honesty and transparency to maintain great relationships.
Angel investing is another way to raise capital. Angels are individuals that help budding entrepreneurs through financing. What they need is a proper business plan that states the nature of the business, objectives, mission statement, business goals, costs and expenses, staff, and everything related to the business.
Participating in capital events can lead to interface with potential investors. Research the event before attending, and prepare a good elevator pitch all the time. It will also help to organize an advisory board that will help in raising money – a group one can meet with regularly to get the job done.
a Rick Casper is a businessman with many years of experience and a dedicated family man. Read more business articles on this page.
Rick Casper 