Effective Seed Capital Funding Strategies

by on December 24, 2012

You may have a vision for a new real estate development project, a new business, or expansion of an existing real estate or business project. Perhaps you have already invested time and money in developing the preliminary concept, but prior to securing financing, partnerships and/or investment capital for your project it must be appropriately positioned and prepared.

Note: Sourcing seed capital investors on your own takes time, dedication and devotion to the amount of research, networking and other activities involved. Rarely will a company find their seed capital investors after a few hours of searching online, or after seed capital making a few phone calls. It is a dedicated effort, thus a team approach is involving multiple parties is recommended.

5) You redraw newly created surplus in your mortgage and invest it in conservatively positively geared income generating investment.

4) He allows the manager to use the profit thats needed for expansion of the business.

He has been doing this for 40 plus years.

3) The dividends reinvested back into the mortgage as another additional payment.

The great thing is that what he is doing is not unique. Its not even all that smart. Stop here for a few moments and ask yourself.

The value of the home less the balance of the mortgage, based on the 30 year curve of repayments.Get a mortgage broker to explain this and show you with software and mortgage calculations.

* Attend business networking events, activities and conventions related to your market, product, services and industry.

There are many things you can do to get to $1000 — you could write articles for cash, if you’re going the online route, you could complete offers for cash, like participating in consumer surveys, you could take photographs and sell them online or you could take the offline route and just do anything business-like to get $100 to $1000.

Could you do something like that? The answer is that you can. If you own a house with a mortgage you have all the tools needed to get going on the journey.

Remember one thing; since your venture hasn’t started making profits, there is a great deal of risk involved for the investor. No one will invest his/her money into a venture that shows no promise. Therefore you have to do your homework before hand and convince your funders that this is the best investment, they’d have ever made!

There are several financial institutions other than banks where you can obtain business funding for your startup business or business expansion. If you are not familiar in your area, you may search on the internet and apply through online, or you may call their hotline numbers and they would be happy to assist you with your financial needs.

What do you do, when you have started a business? Look for other sources of finance, of course! Without money no business can run (read: funding) – be it then an external or internal source. Once your firm starts to run and money rolling is in place, you might not have to seek other sources of funding.

To secure seed capital an investment on your part may be as little as a few hundred dollars. An entrepreneur typically, if he doesn’t yet already have his business up and running but only the idea itself, will do a feasibility study which includes statistical information about the market from a credible source, also there may be miscellaneous information that needs to be provided specific to the concept you are proposing. The few hundred dollars may cover the costs of professional presentation materials and maybe even printing up a limited run of company profiles.

Say, 3 people decide to start a business in biotechnology. They do so by incorporating a company limited by shares. They provide the initial capital. They are the only three shareholders. They are the founders of the company. The initial capital they provide is known as seed capital. The process of such injection of capital is known as a seed round or seed funding. The amount of money involved is usually relatively small – e.g., around US$10,000 or less. The money is primarily used to cover preliminary expenses such as market research and product development.

1) You need to invest surplus sums on a consistent basis into your mortgage.

You should be particularly vigilant of the get-rich-quick schemes, disguised and repackaged in so many different forms that it can be really hard to separate the money-making gold from the fool’s gold – and there is a lot of fool’s gold.

The reason for this, is that all the money is made, or at least the bulk of the money is made by the actual company that is selling its shares. The activity it is involved in is where the money is and this brings us back to investing in the real world. Most retail investors are happy to accept such low returns because of the risk factor. The idea that their money is safe and the share price will, (praying on your knees) not fall or go against you is in many cases quite erroneous.

Find more info on and also details on .

5) He allows the manager to use some of the profit for the expansion in the business.

The reason why this is true, is that there are very few people roaming the streets with a world beating idea AND have the initiative to seek out sources of venture capital. Many people have a good idea. Many many many people do, but only a small fraction of a percentage would do the due diligence and market research to compile a presentation in an effort to secure capital funding for their idea. For this very reason, there are always more investors, than there are entrepreneurs.

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