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Financing
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If you have so much confidence in your concept that you believe it constitutes an attractive investment object you should definitely try to approach potential investors.
Preconditions
In order to make your business concept attractive to an investor you must be able to offer a unique business concept and provide information material on your project. In other words, you have got to create an attractive and interesting basis for business activities in order for your potential investors to eventually make a profit from your concept.
Business Plan and the Person Behind
Typically, the information material consists of a sales prospectus and a business plan.
If you intend to attract investors you must be aware that providing documentation for your business plan and viability of your concept is of utmost importance. You must also be able to convince potential investors that you are capable of implementing your plan.
Where do I find Investors?
Finding investors to a project can be hard, even if the basis for business activities is attractive. Thus, initiatives have been taken to bring entrepreneurs and investors together.
Various setups and forums exist – a sort of match making service where innovators are matched with potential investors. Check the daily press for information on such arrangements.
Business Angels
Another measure – the Business Angels – has been introduced in Denmark after having been a success for some time abroad. The concept of Business Angels is to introduce new entrepreneurs and their business concepts and potentials to business executives with a potential interest in being investors or sparring partners of new businesses and business concepts.
Business Angels are often persons who started their own business and subsequently sold it with a profit.
Investments from such angels often amount to several millions.
Private Financing
Private financing does not necessarily have to come from an initiative such as the above. Financing can also come from your personal and professional networks or for that matter from friends and family clubbing together to help you get started.
In the latter case the investment may not be based on an evaluation of the business aspect as much as it is based on your ability to prove worthy of the trust they have put in you. This way of financing business set-up is widespread among ethnic entrepreneurs.
Quid Pro Quo
No matter the source of finance chosen it is always worthwhile studying alternative ways of financing your concept. Raising capital to corporate finance always involves requirements, costs or provisions – trade offs whose consequences you must consider carefully before deciding on a financing concept.
Andersen
- Connect Danmark
- Business Angels Netværk
- Læs om finansiering
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