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Finding Venture Capital

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Capital is one of the important factors needed to opening the business. Capital is usually divided into three, namely Investment Capital, Working Capital, and Operations Capital. By knowing one of the factors needed to open a business, then come into our minds, how to invest can be collected?

This discussion is interesting, because many people have trouble raise capital. For example, if someone wants to open a laundry business with has its own washing machine, and it requires a capital fund of $2,000, while its own funds new $300, which he could raise capital?

There are three ways to raise capital:

1. Own capital
First obviously, if you want to open a business, you can use their own capital. How can the taking of deposits that you have now, either from savings or deposit, or by selling assets you have. For example, many people who sell the bike to be used as venture capital, or selling the jewelry they own.

Selling goods to raise capital is a common effort. Most importantly, do not feel too good to sell some of your assets to increase capital. For example, if you do not have the money for working capital and need to sell your jewelry, so sell it. Later, when your efforts are successful, you could always buy more jewelry the better. Right?

2. Borrow
Borrow the money for venture capital is also often done. By borrowing, your businesses dream can come true faster. This is better than waiting until the accumulated capital. Only, as you get capital by borrowing, you really should pay attention to cash flow. This is because you would have to return the money you borrow. Whether the return on a monthly, 6 monthly, or maybe years.

In terms of borrowing, that many people are often too focused on how they can get a loan, but do not think about what they can do to return the loan. So, when borrowing, try to figure out how you can return the loan.
The tip, when you think of the way, do not be too optimistic that the income from your business must be able to direct large in the first months. If necessary, make estimates sepesimis possible. From a pessimistic estimate, you'll be able to assess whether the returns are going to do later can be smooth or not.


3. Joint-Partner 
Instead you use your own funds all, or than you borrow, why not try to cooperate with others? With a long term cooperation, the risk of your business can be smaller because they have shared with your friends. But, the benefit you get would also be shared. That is, the risk is shared, the benefits must be shared.

Now the problem, are there people who want to cooperation with you? That depends on whether you can as well offer a reasonable profit on the business you have to offer. However, the offer is not enough profit you know. You should also be able to give a good approximation, not proud of the people you want to cooperation.

In addition, whenever possible, the explanation you gave also must be reasonable, sober, and not merely describe the advantages to people who want to get the cooperation.

Well, now, you already know how to raise capital to start businesses. Hopefully from the above three options, you can determine which option is best. (*)
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