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How do I find money to start my business?

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The greatest difficulty in entrepreneurship in its early phases is the search for different ways to obtain money, financing, to be able to start your idea and get to overcome the so-called " valley of death " or initial phase of your project until you start to obtain positive results by covering your costs. In these early stages, the most common way to obtain financing is to resort to informal sources of financing, such as friends and acquaintances, to gradually turn to what are called business angel networks or private investors that can serve as a reference to obtain other investors later.

From these first phases, it is where you will already find yourself obtaining a positive return and you can use other forms of financing such as what are called financing rounds A, B, C, etc. or through venture capital companies . In the phases after death valley, your company already has the capacity to obtain financing from these professional investors with the normal purpose of expanding the markets that you serve from your startup.

Undoubtedly, the first years, before obtaining positive returns, are decisive for your entrepreneurship project; since, in them you will test and consolidate your product and the business idea. To give you an idea of the importance of particularly careful planning and execution, only 25% of startups exceed a year of life according to a study carried out by Forbes magazine.

The fundamental pillar to support your planning is a correct allocation of the resources that you have and the control of the available liquidity, as if it were the control panel of an airplane. To facilitate its control there are financial indicators that allow you to monitor such as months to runaway and burn rate , which serve to precisely control when you will run out of liquidity for your expenses or investments and when you should search for financing for your project

Normally, this search for financing must be carried out........

© Entrepreneur

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