Where to find money to develop a startup: seven sources of financing

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The founder of a company needs not only to study the market well, come up with a great business idea and understand how to generate income with its help, but also to find money to launch the project. There are various options for raising funds, each of which is associated with certain consequences. How to choose the one that is right for a particular business?

The answer to this question depends on many factors. Can the business cut costs and reinvest revenue to achieve organic growth? Or does the company need to launch a product or service as quickly as possible, invest algeria number data in marketing, expose the brand to the public, and gain market share faster than competitors? Does the founder have a financial cushion, or will he have to pay himself a salary? Does the company need to hire employees, given that the need for monthly payments can be a difficult task in the first months of the project?
Revenue and expense forecast
To answer these questions, you need to make a cash flow forecast. It is best to prepare several scenarios: an optimistic one — attracting large investments and as a result, rapid business growth, a realistic one — gradual development, and the most pessimistic one — in case the company fails to generate the expected income.

you need to calculate the expected monthly income, subtract expenses from it (salary, rent, research and development, marketing, etc.) and set aside a certain amount for unforeseen circumstances. It should be remembered that plans can seriously differ from reality. The timing of purchases or contracts, as well as tax payment dates, are of great importance.

It is better to prepare the forecast in the form of a table: its clear structure will help to better organize the data and assess the realism of the idea. Based on it, you can calculate the amount of necessary investments.