Startup Financing Yankton SD
IPI Wealth Management
Mon-Fri 08:00 AM-06:00 PM
Sat 08:00 AM-12:00 PM
Kahler Financial Group
Rapid City, SD
Real Estate Investments, Ongoing Investment Management, Helping Clients Identify & Achieve Goals, High Net Worth Client Needs, Retirement Planning & Distribution Rules, Planning Issues for Business Owners
NAPFA Registered Financial Advisor, CFP®, ChFc, MSFP
Investment Centers of America
First Dakota National Bank/Ray
Mon-Fri 08:00 AM-05:00 PM
Mon-Thu 08:30 AM-04:00 PM
Fri 08:30 AM-05:30 PM
Capital Financial Services
Areas of Specialization
Business Succession Planning, Charitable Giving, Estate Planning, General Financial Planning, Retirement Income Management
Sioux Falls, SD
First Premier Bank
The Real Funding Strategy That Works
You have an idea for a product or service and want to start a company, or maybe you already have a company and you are thinking about launching a new product line. Either way, you need capital to make it happen, but how do you get the funding required?
If you attend your typical MBA class on startup businesses or an entrepreneurial starter program, you’ll likely be told to write a business plan and shop it to angel and venture investors, right? Not in the real world!
Practical Funding Approach
The financing strategy is bootstrapping in stages based on iterative phases of success, working from the end backwards along a path of steps, only doing what must be done to get to the next phase with minimal capital. This is a resourceful and practical approach:
Start with the Customer and the Market Need
Start with the end in mind — that is, the customer and the market need. Many businesses start with a solution and look for a problem to solve; this is natural when you have technical entrepreneurs and creative people. However, capital is attracted to situations that have proven market demand with a solution that is feasible at a validated price that allows the business to make a significant return based on the risk involved. The idea is to validate the market and price as soon as possible in the development of the company and shape the product or service offering to assure profitable revenues, or at least those that can generate a reasonable gross profit (revenues minus direct costs). This means talking with potential customers as you are crafting the business plan and strategy — the same goes with likely sources of supply.
Establish the Critical Path Items
Next, leverage the knowledge gained to develop the critical path items required to launch the company. Create a working prototype and confirm that the business model will work. One of the outputs of this train of thinking and process is a clearer understanding of the amount and timing of capital required.