Any company or startup whether new or established requires a considerable amount of investment. OAC recommends a number of ways to finance your project without seeking to be financed by the bank. The most important economic studies of any kind of project are the feasibility studies and project financing methods. The latter consists of choosing a method that contributes to the success of the project in the long run. Fundraising proves its effectiveness in contributing to the growth of certain companies and startups that aim to attain an advanced stage of development. So, after reading this article, you will have an idea about the advantages, disadvantages, and alternatives of fundraising.
Fundraising

How can entrepreneurs benefit from this notion ?

Neither a guarantee nor a repayment is required in fundraising as investors take profit from what has been gained as a capital after the resale of their holdings.

As a result, the company’s equity will improve since no debts must be paid and the capital is increasing. In addition, the fundraiser has a positive influence on the company’s accounting and financial balance sheet. Trust is the most important element that should be established between you and the fundraiser who relies on your personality as an entrepreneur as well as the team and business effectiveness.

The job of an investor is not restricted to intervene in every detail of your business because he/she assists you in expanding your business through providing you with some advice concerning the arrangement and management of your business.

What are the disadvantages ?

Fundraising may lead to the decrease of the share of a partner after the participation of the fundraiser. Both of them can have different objectives that can be a source of tension. Your autonomy of decision-making will be restricted by the investors who have a part of your company’s capital. The collaboration between you and the investor may become impossible since you assess the situation of your business concretely while the investors evaluate it based on the numbers.

How to search for an investor ?

Convincing an investor would not be a difficult task if you prepared well the presentation that involves not only the executive summary but also the business plan. The former gives the investor an overview of what the project entails while the latter involves financial statements and tables that provide the investors with the necessary information to become acquainted with the project’s details.

The consultants of OAC advise you to be humble and show significant confidence in your project and your objectives through highlighting the basic details of your strengths, your market, and your competitors.

What are the other alternatives ?

There are several options that can be used to finance your business such as tax incentives and public aid. Entrepreneurs should take into consideration the importance of restricting the effects of fundraising on the steady operation of the business and evaluating the level of implementation.

How can OAC help me ?

All the tools needed to overcome your serious difficulties will be provided by OAC that has a number of experts who try their best to find the adequate solution for your specific problem. Its consistent cooperation offers you a solution for all your payroll, accounting, and fundraising needs.