Not everyone is lucky with getting investors, but do you need an investor for your business anyway?
You have a business idea or maybe you’ve already started one. But there comes a point where you think about how fast you could grow if you could just get a little more money to fund your company. All signs lead me to believe that we’re currently in a tech bubble, and it seems startups from allover are receiving hundreds of millions in funding and being worth billions.
Becoming an entrepreneur is quite simple though. You create a product with Customers + Revenues + Profits. In the Caribbean, more and more people are leaning to the entrepreneurial route but a major problem here is that the younger people who do attempt to begin their own startup lack the finances to do so. Loans aren’t available for everybody and the endless stream from “mom and dad” aren’t for those without privilege.
So how do you grow your business? What do you do?
- You can bootsrap
- You can find an investor.
Bootstrapping your business.
To bootstrap your business means to fund it yourself and not not have any external financial support. This could be one of the most demanding and risky ways to grow a business as you would need a fairly large about of capital in the first place to get the ball rolling.
The advantages of doing this are amazing and pay off in the long run.
- You won’t have to repay loans that weigh you down.
- You have the right to know you’ve built your business from the ground up.
- If your plan doesn’t work out, you can always claim your assets and move on, you owe nothing to anyone.
- There is no fear to meet any specific declines to get your company in the move, as you work at your own manageable pace.
There are disadvantages with bootstrapping though.
- It takes longer to grow your business as your funds are limited.
- Your competitors with the right finances with have a jumpstart and capture your market before you do.
- Borrowing money in the right economy may be the better choice if the appropriate math and research is done right.
Finding An Investor.
Venture Capitalists ot Investors put money in your company in exchange for equity or a share of your company. They tend to be a bit more flexible than bank loans and with the right investor you may even have a mentor to guide you through the industry and show you the ropes.
Nowadays people who start businesses have the instant question “where can i get an investor?” The reality in the caribbean is that Investors are far and wide to reach. Not many people in the region are willing to pump millions into a venture as there seems to be a lack of faith in todays entrepreneurs or the viability of caribbean grown things. Smaller investors exist in the form of business partners or family members, which is a recommended route where you don’t have to pay them back in money but another form.
Business owners must consider that if they’re already fairly wealthy or middle class, bootstrapping is the better choice.
If you can’t afford to bootstrap no matter how hard you try, you might need an investor for your business. To attract the right investor such as a large company: secure a business plan, register your copyrights and trademarks, then pitch what you sell. We’d cover more on another post.
Post originally from hublabtt.com