There is no one-size-fits-all in starting a business. This is especially true when determining how much capital your startup really needs, and even when. We’re breaking down the things you need to consider before deciding on an amount, and when and from where to seek it.
First things first, before you can settle on how much capital you’re after, or where you’re going to source it from, take into account where your business is today and what your current needs are. Every startup wants a viable product and to scale, expand, and turn a profit, but what you need now depends on where you are, and whether you have a solid plan in place for all you aim to achieve.
Typically, from your seed funding, you’re trying only to get the product off the ground (or rather out of the ground, i.e. planting the seed). Anything above that you can seek from your Series A funding when you have a good business model and some success or a track record already. It is also here where you’ll need a full picture of your outgoings and cash flow to ascertain what you will need to keep things moving.
If you haven’t raised money before, from where is going to be among your biggest challenges. There are a number of routes companies can go down, starting from close to home (friends or family), credit cards or personal savings, or for bigger chunks of change, you may decide to go directly to a bank or find investors/VCs.
Related — How To Get In Front Of More Investors
At Funding Coach, we can help you tap directly into what it is you need now, based on both a Capital Needs Analysis and Capital Structure Evaluation we will carry out. Find out not only what your business needs now and later, but where to source it from along the way. Learn more about the services available now, or simply schedule a call and let’s hash it out.