Rob Clegg: Raising Business Capital News

Welcome to the Rob Clegg Medium blog. Despite the changing economic and entrepreneurial landscape, the advice for how to give your startup the best chance at raising capital stays consistent.

According to a recent study, over 94% of new businesses fail during first year of operation. Lack of funding turns to be one of the common reasons. That’s why, at almost every stage of the business, entrepreneurs find themselves asking — How do I finance my startup?

Self-funding, also known as bootstrapping, is an effective way of startup financing, specially when you are just starting your business. Bootstrapping is also about stretching resources — both financial and otherwise — as far as they can.

Crowdfunding is also one of the ways of funding a startup that has been gaining lot of popularity, Rob Clegg advise. It’s like taking a loan, pre-order, contribution or investments from more than one person at the same time.

Keep in mind that crowdfunding is a competitive place to earn funding, so unless your business is absolutely rock solid and can gain the attention of the average consumers through just a description and some images online, you may not find crowdfunding to work for you in the end, Rob Clegg added.

You can also geting venture capital for your business. This is where you make the big bets. Venture capitals are professionally managed funds who invest in companies that have huge potential. However, there are a few downsides to Venture Capitalists as a funding option. VCs have a short leash when it comes to company loyalty and often look to recover their investment within a three- to five-year time window. If you have a product that is taking longer than that to get to market, then venture-capital investors may not be very interested in you.

Now the big question is — How do you prepare your business for fund raising? To address these concerns, invest in a good accounting software and keep your finances in order.

Rob Clegg has a vast amount on raising business capital. Learn more about Rob Clegg on his website here. Alternatively, you can follow Rob Clegg on his Facebook here. Read the latest Rob Clegg news here.