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Troy Solis
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Troy SolisNew You
Asked: May 27, 20212021-05-27T21:44:08+01:00 2021-05-27T21:44:08+01:00In: Finance

How do I raise funds for my start up?

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I have a business plan already, a great one. How do I come about the funds needed for the start up?

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    1. Cassie Clary
      Cassie Clary New You
      2021-05-28T16:21:38+01:00Added an answer on May 28, 2021 at 4:21 pm

      Depending on the type of business you’re starting up, the best and safest way to raise funds at a seed stage is through families, friends and personal savings. Although, some individuals may approach investors, banks even to source for funds when they’re at the seed stage. Obtaining loan from a financial institution is very risky because they absolutely wouldn’t care if the business fails during the first year or not. Also, you’d be using all profits from the business to repay the loan instead of reinvesting in the business.

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    2. Beatrix Beall
      Beatrix Beall New You
      2021-05-29T18:00:38+01:00Added an answer on May 29, 2021 at 6:00 pm

      The best funding strategy for a startup is to develop a kick-ass product and get customers to pay for it, this way you won’t need annoying investors who will try teaching you how to build you company and live your life. Even if you’ll eventually decide to raise external funds from all the usual suspects, you’ll be at a significantly better position if you already have product and customers. Keep in mind the best way to raise money is when you don’t need the money to survive, so the investors can’t leverage your short runway against you.

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