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Here are couple of pointers which you’ll face as Challenges in building up your Startup.
One big challenge we hear time and time again is funds and the second big challenge is resources for guidance.So how will you find Funds & resources for guidance? , Here are some tips which can be helpful for you .
Starting with Funds.
1) Friends / Family : Yes you can ask some fund from your friends and / or family to help you , This is the main ,most trustful & minimal risk resource for your 1st funding.The advantage of raising money from friends and family is that they’re easy to find. You already know them. There are three main disadvantages: you mix together your business and personal life; they will probably not be as well connected as angels or venture firms; and they may not be accredited investors, which could complicate your life later.
2) Angel Investors : Angels are individual rich people. The word was first used for backers of Broadway plays, but now applies to individual investors generally. Angels who’ve made money in technology are preferable, for two reasons: they understand your situation, and they’re a source of contacts and advice.The contacts and advice can be more important than the money. When del.icio.us took money from investors, they took money from, among others, Tim O’Reilly. The amount he put in was small compared to the VCs who led the round, but Tim is a smart and influential guy and it’s good to have him on your side.
3) Seed Funding Firms :Seed firms are like angels in that they invest relatively small amounts at early stages, but like VCs(Venture Capital) in that they’re companies that do it as a business, rather than individuals making occasional investments on the side.
4) Venture Capital Funds : VC firms are like seed firms in that they’re actual companies, but they invest other people’s money, and much larger amounts of it. VC investments average several million dollars. So they tend to come later in the life of a startup, are harder to get, and come with tougher terms.The word “venture capitalist” is sometimes used loosely for any venture investor, but there is a sharp difference between VCs and other investors: VC firms are organized as funds, much like hedge funds or mutual funds. The fund managers, who are called “general partners,” get about 2% of the fund annually as a management fee, plus about 20% of the fund’s gains.
5) Social Network [The last resort] : When every possible funding way is blocked , Ask for CrowdFunding. In India I have not seen much trend in this . But yes you can give a try.
Finding Guidance/ Mentor for your Startup :
I would rather say “Don’t find Mentor . Let the Mentor find you”. If you’re an early-stage entrepreneur and this is your first startup company, you are not alone. Thousands are toiling over code in the hopes that their product will gain users and revenue. The problem with being someone who can build a great product is that you might know more about your core technology then you do about the business of startups.
Below are some of the things you should consider before choosing a mentor.
1)Success: Just because someone speaks at conferences and has been in the industry for 10 years, does not mean they are qualified to be your mentor. Look at the individual’s past successes and find out exactly how they’ve contributed to them. Check with others to gauge this person’s visibility in the industry and determine whether or not that success is directly related to the type of business you want to build.
2) Connections: A good advisor/mentor will open doors in the places you need doors opened. If you’re a music content provider and you need help with licensing, find someone who knows the legal and business development side of major labels. If your revenue model is based on advertising, find someone who can help broker deals with ad networks and agencies. If you’re building your business on a 3rd party platform, get an advisor with friends on the inside.
3)Personality: Determine whether or not your potential advisor is famous or infamous. Sites like The Funded[http://www.thefunded.com/] allow entrepreneurs to share their good and bad experiences of investment groups and individuals. While these reviews should be taken with a grain of salt, you want a mentor that is present to answer your questions, engaged enough to offer suggestions, patient enough to explain some of the basic tenets of startup life, and finally, mature enough to have their suggestions occasionally rejected.
Quick web tip :
Here’s some of the websites which will keep you inspiring & creative at your work
2) http://www.Yourstory.in [my personal fav]
Hope you all like this post . Will be regular on Blogmonk . Best Luck.