As if coming up with a business idea wasn’t difficult enough, you also have to scrape together enough money to turn your dream into a reality.
Most aspiring entrepreneurs don’t have the millions in their back pocket it takes to create a viable business.
But if profits wait on the other side, you have to do everything in your power to get your startup off the ground.
Knowing that, let me give you a tip that will pump up to $15 million into your business proposition.
Before we get to the millions, you have to know the lifecycle of business funding.
There is so much groundwork in between coming up with a product idea and listing your company on the public market.
Sure, you’ve heard the success stories of Microsoft and Uber, but how did those companies get to where they are today?
Investors that started with Microsoft are now counting their billions in luxurious Californian mansions.
So, how do you make sure you get the funding you need?
Start from the bottom. It may not be glamorous, but you have to begin somewhere.
In something called pre-seed funding, the founder of a business (in this case you) digs around in their pockets and couch cushions for spare change.
Then you ask your generous family and friends for financial help to get your business baby up and walking.
After you’ve done that, and created an idea for a product, seed funding begins.
This is where professional investors come in. Usually called angel investors, rich individuals with a passion for startups will lay down some cash to get you going.
Unfortunately, this isn’t free money.
In exchange for helping your budding business, you give these investors equity.
That’s a fancy term to say they become partial owners of your company.
To give you a hint: that’s how Beyoncé’s $6M stake in Uber (UBER) turned into $300M.
That’s where my $15M tip comes in: all you need is one investor.
Once you’ve secured one big checkbook to your business, the rest will follow.
Series A funding is the first serious stage after you’ve got your product and business model mapped out, during the seed rounds.
The funding in this round ranges from $2 million to $15 million, depending on your industry and the market.
At this stage, investors don’t even expect you to have turned a profit yet.They just want to see that you have an articulated plan to produce your product, and a viable market to sell it in.
So, if you can convince one high roller that you’ve got a good idea that will sell, you’re well on your way to owning a multi-million-dollar company.