Tuesday, January 13, 2015
Grow Your Business: Creation to Investment
Starting a business requires expertise, hard work and the ability to raise money. One way to attract investors is to turn your company into an LLC. Using a limited liability structure shows that you are serious about running your business in the long-term. A formal structure may also make your look more sophisticated in the eyes of an investor.
Starting a Company From the Ground Up
Starting a new company requires nothing more than an idea and some way to fund the implementation of that idea. Many entrepreneurs will use personal loans, personal savings or loans from family and friends to get started. In the beginning, the business owner may make the product by him or herself at home. The goal at first is typically to perfect a prototype and determine whether the idea is profitable before seeking limited liability protection or outside investment.
Establishing the LLC
Establishing the LLC is not a complicated process. All you have to do is file the articles of organization in the state where you wish to operate your company. There may also be a fee that you have to pay when filing the paperwork. While you can create a custom document, each state has a boilerplate form can be filled out and submitted within minutes.
Gaining Traction Within Your Industry
Once you have established your business structure, the next step is to gain market share and exposure for your brand. Tactics that may be employed include online advertising, talking up the brand online or going to trade shows. These are all relatively inexpensive ways for a new business to market itself and attract attention for itself.
How to Obtain Outside Investment
To obtain investment from a third-party, your company generally needs to show some sort of consistent revenue. However, investors may take a chance on a company simply because the business owner seems knowledgeable or has a personality that could lead to more deals in the future. Therefore, you have to prove that your company either is viable as it is or could be viable if an investor put his or her name and the legitimacy that the name brings to a rising brand.
No business starts out as an overnight success. Typically, it starts with one person or several people with an idea and a dream. However, with hard work and a bit of luck, it is possible to find investors and turn a small company into one that is worth millions of dollars.