{"id":34223,"date":"2023-10-20T14:33:03","date_gmt":"2023-10-20T14:33:03","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/how-should-i-fund-my-start-up-startupsmart\/"},"modified":"2023-10-20T14:33:03","modified_gmt":"2023-10-20T14:33:03","slug":"how-should-i-fund-my-start-up-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/how-should-i-fund-my-start-up-startupsmart\/","title":{"rendered":"How should I fund my start-up? &#8211; StartupSmart"},"content":{"rendered":"<p><b>I need a fairly large amount of capital to get my business up and running \u2013 I need equipment, premises and staff. I\u2019m not sure, however, how much I should fund this myself by going into debt and how much to ask an investor for, if anything. How can I judge this?     <span id=\"more-4347\"><\/span>  <\/b> <\/p>\n<p>\u00a0<\/p>\n<p>The real question here is how much will an investor give you towards your business?<\/p>\n<p>\u00a0<\/p>\n<p>This will determine how much money you would invest yourself. If it is possible to find an investor who is interested in your company and will take a equity share and is not looking for a return on their money right away, it would be acceptable to take their offer.<\/p>\n<p>\u00a0<\/p>\n<p>This could be 100% to 10% investment at which you will have to find the remaining funds from another investors or another avenue.<\/p>\n<p>\u00a0<\/p>\n<p>Approaching an investor for finance is not for the faint-hearted though.<\/p>\n<p>\u00a0<\/p>\n<p>No one will invest their hard-earned money if they don&#8217;t feel you have the right idea or don&#8217;t have confidence within your abilities.<\/p>\n<p>\u00a0<\/p>\n<p>Given the investor will want to see you have committed funds to your start-up, you are going to have to go into some personal debt if you don&#8217;t have access to cash funds.<\/p>\n<p>\u00a0<\/p>\n<p>Determining this balance will depend more on you.<\/p>\n<p>\u00a0<\/p>\n<p>If using an investor, you first must be comfortable to get into bed with someone else. Having an investor is like having a business partner (or being married).<\/p>\n<p>\u00a0<\/p>\n<p>You always have someone to answer to, someone watching your every move and tracking how you are spending their money.<\/p>\n<p>\u00a0<\/p>\n<p>If you want to source an investor, be prepared to give away 30-70% ownership within your company, depending on the amount you are asking them to invest.<\/p>\n<p>\u00a0<\/p>\n<p>Don&#8217;t forget you approached them for money and you need them, they don&#8217;t need you.<\/p>\n<p>\u00a0<\/p>\n<p>To be blunt, if you have the personal funds or access to them, it would be easier to use these funds and invest yourself.<\/p>\n<p>\u00a0<\/p>\n<p>This will mean you have 100% control and 100% ownership.<\/p>\n<p>\u00a0<\/p>\n<p>However, for some start-ups an investor maybe your only option, as you may not have the funds yourself and funding from a bank is not an option.<\/p>\n<p>\u00a0<\/p>\n<p>Unless you have a large amount of equity behind you, sourcing funds from the banks in this current market is almost impossible.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I need a fairly large amount of capital to get my business up and running \u2013 I need equipment, premises<\/p>\n","protected":false},"author":2,"featured_media":62389,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/34223"}],"collection":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/comments?post=34223"}],"version-history":[{"count":0,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/34223\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media\/62389"}],"wp:attachment":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media?parent=34223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/categories?post=34223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/tags?post=34223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}