Starting a business venture can be a frightening prospect. You may ask yourself, “What’s in it for me?” Or “Is this really what I want to do with my life?” In order to answer these questions and many more, you need to consider all aspects of starting and growing your business enterprise – from the marketing strategy to the business operations to the financial plan.
Starting a business venture requires financing. Likely, an angel investor will finance the initial development of the concept, since that’s usually the business creator or owner of the idea. Over time, as the new business becomes more successful, other investors can also become involved in helping to finance the development and growth of the new business venture. Other small business venture capitalists may provide seed money or small loans to new business ventures that they believe have the potential for growth and success. Many entrepreneurs approach private equity firms to raise capital for their new ventures. While there are many entrepreneurs who have been successful at raising capital for their new business ventures, there are also many entrepreneurs who have not had success in doing so.
Passion is key. There are many successful business ventures started by entrepreneurs with great entrepreneurial energy, but there are also many more that failed. Passion is the key word. Entrepreneurs must realize that they are taking on a great challenge, and that failure is not an option for them. Successful business ventures arise from a passionate founder, one who sees a vision of success in front of them, but who is also capable of tolerating, appreciating, and following through with tough challenges.
Capital Requirements For most business ventures, startup companies obtain venture capital from banks and/or private equity firms. Venture capital entails supplying a significant amount of personal financial resources to a company in exchange for a promise to repay the loan to the lender in a period of one to three years. The startup company would then use the money raised from the venture capital firm to fund its business operations. As venture capital is typically obtained in this manner, startup companies can often experience slowdowns in operations and financing as their cash flow improves. In addition, venture capital firms may also require the startup company to submit its business plan to them before they will provide any venture capital funding.
Funding Options For new businesses, funding options may include bank loans, line of credit, grants, and angel investors. Some startups choose to work with a combination of funding options to finance their business ventures. This means having a substantial part of the financing secured in a low-risk venture capital investment (like a business loan) and using part of the financing for operations and expenses and part for expansion. Most traditional businesses obtain a conventional loan at some point in their business development process. In the case of startups, conventional loans are usually sought much earlier in the business venture process because they are less likely to be supported by venture capital firms.
“Wilderness Redefined” by John Douglass is a passionate, authentic journey through the obstacles and challenges of starting and operating a small business. The book offers a practical approach to achieving your goals and realizing your dreams. Starting a business in the outdoors requires many sacrifices and Douglass offers many examples of how this can be done while maintaining a full-time job with a rewarding income. ” Wilderness Redefined” provides readers with an effective blueprint for creating a successful business venture and working the traditional “every day job” to support it.