Business Funding What Investors

Your mentor may not have to be a specialist in your profession, but it is beneficial if they are to increase your chances of exploiting key partnerships.According to Jupiter Business Mentors' (a popular online mentoring platform) market research, 93% of aspiring entrepreneurs feel the need to engage with mentors who have been there, done that, and seen it all.

Meanwhile, as compared to non-mentored companies, 80% of mentored businesses have seen long-term benefits like performance growth, and company sales.

Mark Zuckerberg of Facebook and Larry Page and Sergey Brian of Google were all mentored by Steve Jobs and Eric Schmidt, respectively, in the early stages of their companies.According to Kabbage, Inc.'s report, the effect mentorship has on becoming a company is obvious.92% of small ventures claim mentors significantly affect their company's growth and sustainability.

As the early years of every company is the critical make-or-break time, business mentors are critical to their growth.89% of small firm owners did not have a mentor they wished for.

These numbers show the need for the entrepreneurial community to discover and engage with competent advisors who can provide sound guidance to help a company through those rocky first years.According to the survey results, business advisors narrowing the mentoring gap and are critical for any business growth.

Business advisors can broaden an entrepreneur's experience, providing them with various viewpoints to address challenges and giving them the opportunity and motivation to partner with trustworthy sources, creating a seamless and secure journey to their goal.Mentors can contribute their traditional insights to blend with modern approaches.While becoming a young entrepreneur simply means working smarter and ditching old-school approaches, it is still best to get a mix of old insights and modern thinking processes.

How do you raise funds for your startup business?Investors look for many things before funding a brand new venture.

How strong the business model, expansion, and expenditure plans are and how investors will receive their return matter the most to attract funds.Many things are intimidating young entrepreneurs in raising finance for their startups.

We have explained the 5 most common funding trials in the below post to help entrepreneurs find adequate funding for their new venture.

Some need the money to overcome a cash flow deficiency.

Until this moment business owners were always concerned whenever they needed financing of this type.

They usually contacted banks for the money rather than approach a private companies.

Banks are unlike private companies and have a stringent set of terms and conditions to follow.

Banks consider fast business funding as high-risk investments.

They reject applications from businesses based on these criteria alone.

Opening a franchise needs a substantial investment of capital which includes a hefty franchise fee along with continuing payments and marketing expenses. Every individual does not have access to that kind of cash says, Sean Michael Malatesta.

Are you looking to invest in a franchise? If yes, then you are at right place. Actually, finding the corporate loan to fund your franchise asset is challenging as you have to navigate the numerous options available. In this article, you will get the information how you can finance the purchase for a new franchise.

Let’s have a look:

• Franchisor financing:

If you want to invest in a franchise, your conversation should be direct with the franchisors. You should ask them for recommendations. Actually, they can have the contract with lenders in order to approve a loan. In fact, they can also help in shortening the process and help you open sooner.

Also, some franchisors will endow debt financing themselves. You can check this in the franchise disclosure document. Ask the franchisor if they can help in financing. Lessening the upfront cost will leave you more dough to keep your franchise profitable and developing.

• SBA loans:

Another option to consider while financing a franchise is Small Business Administration’s Loan program. These loans follow the similar model to old-style term loans from a bank or alternate lender.

SBA has reduced the risk to lenders by assuring a portion of the loan amount with lower interest rates and longer repayment terms. Hence, if you have a good credit score to apply for the loan, then you should certainly apply for the loan. However, keep in mind that prerequisite standards can be strict as well as the application process is long.

• Commercial bank loans:

One more way to finance the purchase of your franchise is to apply for traditional term loan from a bank. Under this model, a bank or lender provide your lump sum of cash up front which you have to repay in monthly instalments over a specific period of time emphasis Sean Michael Malatesta.

While applying for the commercial loan to buy a franchise, the lender will review your corporate plan and credit history. Actually, the lender uses these documents to evaluate your creditworthiness. You can assume that the stronger your credit history, better the terms and interest rate for your term loan to finance a franchise.

• Crowdfunding:

If no franchise financing option is available then obtaining finance may require some creativity. One of the latest and creative ways of financing franchise is through crowdfunding.

You have to set up and promote your own crowdfunding page. Moreover, you can look toward particular organizations that crowdfund for businesses and franchises. There are a lot of websites that crowdfund for specific industries and business types. Crowdfunding is the best option if you have a bad credit history and you are not satisfied with the loan products and interest rates for which you qualify.

Wrapping Up

Sean Michael Malatesta – A corporate leader has given the above franchise financing options to the entrepreneurs. With all these funding options, select a path that is right for you as well as your corporate. Be careful, thorough and resourceful with the funding plan and your franchise investment will definitely flourish.

Crowdfunding is the strategy for business people, innovative masterminds, and non-benefits to get funding.

In March 2014 was a major month for crowdfunding and for crowdfunded products.

5.7 million individuals have sponsored around 130,000 imaginative activities on Kickstarter.

There are four basic types of crowdfunding: Donation, Rewards, Debt and Equity.

Top stages incorporate Kickstarter, Indiegogo, and RocketHub.

The person who supports your project by putting his money is known as an investor.

Kickstarter:

It is the most demanded crowdfunding website in the world with maximum creators and backers from across the world. The criteria are bit tough and available only in US and UK and only creative projects can be posted to raise funds. Kickstarter has criteria for fund "All or nothing." If you achieve goal described you can get all funds raised with nominal fees predefined by Kickstarter. So, are you deciding to start like crowdfunding website you can get your Kickstarter Clone and can adopt your own criteria.

It is a pity, but some managed to do it.

Thus, in order to get worthy funding, you really need to be very interested in users and convince them of your sincerity.

Let us look at the most basic ICO mistakes that prevent you from achieving the desired goal and may leave you at the curb.

Do not be surprised if investors pass by and they do not have the desire to give you money for development.

You can forget about major investments.

You need many languages, really.