Self-financing: and then?
Most of the time, during the first days of the project, the funding will be assured by the entrepreneur himself in cash and/or in industry (work or services) and/or in nature (goods or materials) that he will allocate for the creation of his company; in return, he will receive capital share.
Sometimes, the personal contribution of the entrepreneur does not last enough to fund the starting phase. Developing a product, testing an idea, validating a technology or business model can consume a lot of money.
What you should do
– Set up an accurate battle plan, including the development vision of your company and the matching funding route. Be dynamic; keep it up-to-date with the changes in your industry.
– Request each financing arrangement at the right moment with the right file. It is important to be informed of the particular criteria of every funding arrangement and to build your files with the greatest care. Also, do not be reluctant to apply simultaneously for several financing agreements which correspond to your company’s stage of development.
What you should not do
– Spend too much time and energy on the search for funding. An entrepreneur’s first objective is to develop his or her business and devote himself or herself to the development of his or her product and its commercialization. Delegate everything that is not central to your business.
– Isolate yourself in this complicated path. To gain experience regarding financing from other entrepreneurs and experts, join an entrepreneur ecosystem, with its network of entrepreneurs, incubators and accelerators. For further information, you can also consult firms that specialize in the financing of startups.
– Distort your project so that it fits a certain financing model.