Transcript
To finance your business it is depending first of all can you generate revenue very early? Is the product ready or is an MVP to be brought into the market? Because this can open up different ways of financing for you, in comparison if you say I’m here to develop from a secret track and this needs 50 million and five years and no revenue ever possible until the end of it. So I just trying to speak about extremes here to make it understandable. But this is [the] first basic thing. How much money do I need to start my business and to generate income? Speak revenue through my business? That’s the first question because the longer you are not able to generate revenue and therefore income, the more you need to have money from the outside.
Maybe through some savings, maybe through some family and friends money, maybe some grant money or public money, but the longer it takes the more you will be forced to talk to investors, agent investors or maybe institutional investors. So first of all the question is what’s my product? Can I bring it to the market? And maybe my product idea is a first-generation MVP like [a] first product where I can start from the scratch very early and test the market if my new idea is really true before I take a high amount of money from investors. So that’s really the basic question. What do I need to start? How long does it take to revenue? So this defines my requirements. Am I able to find the means for that? If you want to maybe go into e-commerce.
There are now providers out there where you can within a day have an own shop up and running and with payment solutions connected to that and anything. So the hurdles now are very very low. Ten years ago you would have to find somebody who would code your shop. Now, this can be [found on] find in the Internet, in an environment which makes it much easier and the pre-financing much lower. But it’s really the most important thing; how much money do I need to generate my first revenue? And what do I need to do that? And how long will it take to generate a constant income stream?
Tip: Online Courses in Startup Funding
To learn more about the different avenues you can tap into for funding as well as how to finance your business by having the right financial mindset, check out our courses entitled Get Funding for Your Start-Up and Nail Your Entrepreneurial Finance.
