Entrepreneurship is currently trending among young people. It feels very cool if you are young but already have your own business even though the business is not yet at the top level. In addition to the trend factor, there are also many other factors that make many people competing to open a business. Starting from setting up your own business or making a joint venture with closest friends.
Usually creative students always have the idea to open a joint business while spending free time. Among the preparations to open a business, there is one that often becomes a stumbling block when opening a business, namely the problem of capital to fund the company.
Funding and capital do play an important role in a company. Without sufficient capital and funding, the company’s needs during the production process will be hampered. Can also result in a decrease in the quality of products or services of our company. Therefore, we must really be able to meet the initial capital of our start-up companies and funding for further company needs.
Even though the businesses that are opened are still small and local in nature, we must still pay attention to the long-term needs when establishing a company. In fact, there are many ways to fund company capital. Starting from trying it yourself or making presentations to other parties so they want to fund our company. Well, below I write a number of ways to get sources of funding and capital of the company that we started.
Having the idea of founding a company does not need to rush to immediately set it up. Once we have an idea, we can set a target when the company will start operating so that we can save money to get an injection of funds and capital. Funding company capital from private funds is the safest way. Because if there is a failure the company has nothing to do with outside parties.
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Looking for Investors
After the company began to show its condition and growing, of course the company still needs an injection of funds to continue to develop and increase the company’s turnover. After we funded the company’s capital with private funds, now is the time for you to present the success of your company to other parties who want to become investors. Show how the company’s growth continues to grow rapidly and also show how much profit will be achieved if the company’s capital and funding are added. If your presentation convinces investors, then your company will be guaranteed an injection of funds.
However, after getting an injection of funds from investors we cannot necessarily forget the services of the investors. Need special agreement what the company will give to investors after investors fund our company. Agreement in writing and endorsed by the authorities is very important to prevent undesirable things.
Application for Fund Loans
The third way is a way that is practically safe and can also be called sacrifice. Safe because the company’s effort is only between the company and the borrower. So, we don’t need to make an agreement like making a deal with an investor. We only have to make an agreement when our loans will mature. You could say the sacrifice because, if it is due, it turns out we have not been able to pay off our loans, then guaranteed company assets will be the victims.
Making a loan application can be done at the Bank or Cooperative or other institutions that serve debt and receivables. The method is more or less the same as how to make presentations with investors. The difference is that we don’t need to do a presentation in person, just follow the procedures of the borrower who will usually conduct a survey of the company’s operations. There we must be able to show the existence of the company so that sufferers are sure to propose to the borrowers to provide loans to our company.
Of the three ways above, you can choose which is the most appropriate way you can do. Some of us might be able to capitalize on the initial company with private funds.
It’s just that if the company grows, usually we can’t help but do the next 2 ways that I have written. Because companies that have developed require no small amount of funds. What needs to be held is commitment. Commitment to developing commitments, so if we make an agreement with investors or borrowers we can seriously pursue the target in order to be able to return whatever funds we borrow.