Funding a new startup business can be tricky. As an innovator, the last thing you want to do is share your profits with those who did not have the same genius idea as you. But the truth is unless you are extremely wealthy and can fund your own business entirely, you will need to find a means to fund raise. Sadly, that will mean splitting earnings. Anna Vital of Funders and Founders suggests a common template for profit and investment splitting.
This is only one of many ways of dividing investments, only to show a general way of how investments and partnerships work in the early stage of a business.
There are several other ways to raise money, but may not be as time-efficient as straightforward investments. Fundraising and sponsorship are the most common alternatives.
Fundraising involves creating an event to gather people and create interest in the new startup company. The startup may create their own event or join a large scale event where many other startups showcase. You will attract many prospective investors, and to a lesser extent donors a well. Finding donors will be much harder if your prospective business is for profit.
Sponsorship can be a more realistic approach to gaining assets, depending on the layout and function of your business. Trading services products for mutual gain is a transaction used since the beginning of time, known a ‘bartering.’ These services can take the form of publicity, technical assistance, referrals, and more. Sponsor Pitch is a site dedicated specifically to connecting businesses to sponsorship opportunities, but many other sites help as well, such a Sponsorship, LinkedIn, and even a contacting a specific business personally can do wonders.
So if you feel you are in need of some liquidity for your business, don’t give up until you explore all these options!