startup business plan - Complete Controller

Capital is vital for every business, especially for a start-up business. However, there are several sources from where the new company can take finance. Therefore, this article will discuss the ten best ways to establish business credit and ensure proper bookkeeping

 

Bank loan Check out America's Best Bookkeepers

A business can get credit by merely getting a bank loan for a start-up idea is extremely difficult and unlikely, unless the person already has enough funds or collateral. However, this method is beneficial for a new business to fund the company initially. This method can also provide excellent opportunities for the entrepreneur in terms of investment.


Gain a customer or business partner


If a person has a good idea and can embody or present it with passion, he can already contact existing customers or business partners. Possibly, he can inspire them so that they invest in their business, of course, not without participation. A person should, therefore, carefully consider whether this form of fundraising fits for him.   

Incubators

The term incubator originally comes from medicine. In the start-up area, the incubator is a facility or institution specializing in creating the perfect conditions for growing companies. Incubators offer founders many opportunities, especially advisory services and financing. Companies that “grow up” in incubators have a significantly higher survival rate. An example is Telefónica’s start-up program Wayra in Germany, which promotes company founders in the Internet and telecommunications field. Check out America's Best Bookkeepers

 

Venture capital

Several investment companies specialize in investing in venture capital in early-stage start-ups. The goal of the investment companies is to sell the purchased shares later profitably, i.e., to earn at the exit of the start-up. In addition to capital, investment companies also provide their business know-how. However, this also increases the voice of the lender. Among the leading early-stage venture capital investors in Europe are the companies Target-Partners and Earlybird.


Business Angels

These are the most successful company founders with high equity capital through the sale or initial public offering of their start-up. Through years of experience, they have excellent know-how and widespread networks that they provide to the founders. Business angels often become active in the first phase of the business start-up. They are fully involved in the start-up process. In Germany, there are about 40 business angel networks. As a prerequisite for the first contact, the entrepreneur should be able to present himself and his idea correctly and have a business plan

Crowdfunding

The latest variant of fundraising is crowdfunding. The big difference between traditional financing options is that the number of lenders increases significantly. Because here invested not a single company or a unique business angel, but a variety of people, the mass. Crowdfunding sets a minimum amount of capital before the action starts. Every investor or, in this case, Crowd funder receives a small reward as a thank you. One of the most well-known crowdfunding projects, Brainpool launched the idea to bring the TV series, Stromberg, in the cinemas. As a target, the company wanted to collect a million euros, which succeeded after only one week.

 

State funding

The promotion programs of KfW exist for different financing situations. In general, these loans come from house banks. Since the banks often have little interest in the mediation of government funding programs, the entrepreneur should, as a founder to inform himself in advance and ask specifically at the bank. An overview of KfW’s funding programs comes from the founder pages of the bank and the corresponding sections within the Starting up founderCheck out America's Best Bookkeepers

 

Friends and family

If a person knows people with high equity in his family or friends circle, do not hesitate to introduce them to your idea. However, the person should, as with foreign investors, regulate everything very clearly and honestly. Otherwise, they risk damaging these relationships. 

 

Self-financing

Nowadays this variant is as cheap as never before. Ninety percent of all start-ups are self-financed. It may take a bit more time to save starting capital or start with little money. The benefits are immense. The investor retains full control over the business while still having 100% of profits.

 

Identification of the source of problems

Money problems can have different origins: lack of profitability (this is the most severe case), growth too great, temporary difficulty, unforeseen event, capital too weak. The entrepreneur must understand the source of his problems and know how to explain them. This understanding implies having a basic level of financial analysis. Ask an accountant for a clear explanation and have it repeated if you do not understand what he is saying.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers