Funding a New Business For Dummies

Book description

Find the money to execute your brilliant business ideas

Funding a New Business For Dummies drills down to the top question on the minds of entrepreneurs—where can you find the funds to launch your new business? Connecting the dots between your vision and the capital needed to make it happen can be one of the most challenging parts of entrepreneurship. This book helps you over that hurdle, giving you the essential information and advice you need to navigate the path from idea to execution of a business plan. Discover how to evaluate all the options available, from tapping into your own savings to traditional loans to newer options like crowdfunding. You’ll also dive into finding and negotiating with investors, as well as managing your capital once it’s in hand. Start by visualizing business success, and then put in the work to make it happen, with the help of this no-nonsense Dummies guide.

  • Get an intro to the world of small-business finance
  • Assess your financing needs and take stock of your current assets
  • Evaluate your options for loans, grands, and subsidies
  • Learn to approach investors and pitch your business idea

Anyone in the early days of launching a business will find a treasure trove of valuable information in Funding a New Business For Dummies.

Table of contents

  1. Cover
  2. Title Page
  3. Copyright
  4. Introduction
    1. About This Book
    2. Foolish Assumptions
    3. Icons Used in This Book
    4. Beyond the Book
    5. Where to Go from Here
  5. Part 1: Getting Started with New Business Funding
    1. Chapter 1: Learning About the Funding Ecosystem
      1. Understanding Funding Terms and Definitions
      2. Moving from Idea to Successful Execution
      3. Why Do We Need Startup Funding?
      4. How Startup Funding Has Evolved
      5. Examples of Startup Funding that Worked
    2. Chapter 2: Finding the Funds You Need
      1. Different Business Stages Have Different Funding Needs
      2. Aligning Your Financial Needs with Your Business Objectives
      3. Evaluating the Capital Needed for Each Business Function
      4. Balance-Required Funding versus Nice-to-Have Funding
    3. Chapter 3: Getting Your Finances in Good Order
      1. Creating a Compelling Business Case and Pitch Deck
      2. Building Detailed P&L Scenarios
      3. Sample P&L Excel Templates Just for You
  6. Part 2: Exploring Funding Options
    1. Chapter 4: Bootstrapping: Starting with What You Have
      1. What Is Bootstrapping?
      2. Advantages and Disadvantages of Bootstrapping
      3. Creating Strategies for Minimizing Expenses
      4. Good Examples of Successful Bootstrapped Startups
    2. Chapter 5: Tapping into Personal Funding Options
      1. Using Personal Savings, Credit, and Assets as Funding Sources
      2. Knowing the Risks and Benefits of Using Personal Finances for Your Startup
      3. Keeping Your Personal Finances and Credit in Order
    3. Chapter 6: Borrowing Money: Debt Funding Basics
      1. Understanding What Debt Funding Is … and Isn’t
      2. Getting the Lay of the Land
      3. Knowing the Types of Debt Funding Options
      4. Understanding Interest Rates and Repayment Terms
      5. Managing Debt Responsibly
    4. Chapter 7: Sharing the Pie: Equity Funding Explained
      1. What’s Equity Funding, Anyway?
      2. What Equity Funding Means for You
      3. Prospecting for Equity Funding Sources
      4. Understanding Startup Valuation and Dilution
  7. Part 3: Navigating the Funding Landscape
    1. Chapter 8: Finding Free Money: Grants and Subsidies
      1. All About Grants, Subsidies, and Government Programs
      2. Private Sector Support Aplenty
      3. Examples of Grants for Specific Industries and Regions
    2. Chapter 9: Demystifying Angel Investors
      1. How Angels Help You Fly
      2. Present a Compelling Attraction
      3. Making Your Pitch
    3. Chapter 10: Venturing into Venture Capital
      1. What’s Venture Capital All About, Charlie Brown?
      2. Platform Stages
      3. Energy Precedes Capital
    4. Chapter 11: Crowdfunding Made Easy
      1. The Magnificent Seven
      2. The Advantages
      3. The Challenges
      4. What’s Your Best Fit?
      5. Kicking the Tires on Each Platform
      6. Creating a Compelling Crowdfunding Campaign
    5. Chapter 12: Leveraging Incubators and Accelerators
      1. Incubators Help You Push Through the Soil
      2. Upgrade to Turbo
      3. The Mechanics of Incubators
      4. Accelerators under the Hood
      5. Where Do You Sign Up?
  8. Part 4: Negotiating and Closing the Deal
    1. Chapter 13: Understanding Term Sheets and Investment Agreements
      1. The Terms of Term Sheets
      2. Investment Agreements and You
      3. Common Clauses
      4. Nobody Wins Unless Everybody Wins
    2. Chapter 14: Preparing for Due Diligence
      1. Put On Your Deerstalker Cap
      2. Channel Your Inner Marie Kondo
      3. Look Both Ways
    3. Chapter 15: Sealing the Deal: Closing the Funding Round
      1. What You Need to Finalize Funding Deals
      2. Addressing Legal and Compliance Concerns
      3. Aligning Expectations for a Smooth Transition
  9. Part 5: Managing Finances and Growing Your Startup
    1. Chapter 16: Financial Management 101
      1. Reading the Scorecard
      2. Establishing financial controls
      3. Finding Technology Solutions
    2. Chapter 17: Budgeting and Cash Flow: Keeping Your Startup Running
      1. Five-by-Five Budgeting
      2. The Best Ways to Manage Cash Flow
      3. Additional Cash Flow and Budgeting Considerations
      4. Stay in the Flow
      5. Leveraging Professional Expertise
      6. Leveraging Potential Expertise
    3. Chapter 18: Analyzing Financial Reports and Making Informed Decisions
      1. Making Your List, Checking It Twice
      2. Metrics, KPIs, and You
    4. Chapter 19: Scaling Up: Funding Strategies for Growth
      1. Scaling the Mountain
      2. Creating a Strategic Growth Plan
  10. Part 6: The Part of Tens
    1. Chapter 20: Ten Tips for Successful Startup Funding
      1. Design a Clear Value Proposition for Potential Investors
      2. Define Clear Funding Objectives
      3. Review Different Funding Options That Suit Your Startup’s Stage and Needs
      4. Build Relationships with Potential Investors Before You Need Funding
      5. Connect with Centers of Influence and Strategic Partnerships
      6. Construct and Negotiate Investment Agreements
      7. Prepare Your Documentation for Due Diligence
      8. Demonstrate the Ability to Execute
      9. Maintain Open and Transparent Communication with Potential Investors
      10. Be Ready to Pivot
    2. Chapter 21: Ten Common Mistakes to Avoid in Startup Funding
      1. Rushing the Funding Process
      2. Failing to Create a Detailed Financial Plan
      3. Underestimating or Overestimating the Valuation of Your Startup
      4. You Don’t Understand Dilution
      5. Choosing the Wrong Investors
      6. Setting Unrealistic Expectations
      7. Not Nurturing Long-Term Investor Relationships
      8. Being Unprepared for Due Diligence
      9. No Flex
      10. Repeating the Same Mistakes
  11. Index
  12. About the Authors
  13. Connect with Dummies
  14. End User License Agreement

Product information

  • Title: Funding a New Business For Dummies
  • Author(s): Marc R. Butler, Eric Butow
  • Release date: April 2024
  • Publisher(s): For Dummies
  • ISBN: 9781394241712