If you're a lady whose mind is buzzing with ideas that are soon to become actions in tune with the startup momentum, this is for you!
You remember how before you took up anything new or before you went in for an exam or a competition, you were given that initial push, a nudge of belief and in some cases a dollop of curd? Well, in the business world, this initial push, the good wishes, the nudge of “I believe in you” is conveyed through la monnaie, moolah, moneda.
With that in mind, we’re delving into the first source of raising la monnaie for your venture, called seed funding.
If you want to have the fruit, you first have to buy the seeds and plant the tree. Same logic, different context - If you want to see your idea become a successful business, you first need to invest the seeds of capital and then grow your idea. Voila, presenting to you seed funding.
Seed funding is the very first bout of capital when you start a business. Seed money is received in exchange for a stake in the venture’s share of profits (and risks).
The farmers who invest the seed money are the entrepreneur herself, her family and friends. Basically, your support system who believes in you even before the world knows you.
Seed money is used for product research, product development, market research, target audience research, supply chain identification, building operational plans and all those exciting blueprints that show future growth potential of your business.
As mentioned above, seed capital is used for the nourishing and strengthening your baby venture. The blueprints developed during this stage are used while pitching your business idea to more professional investors viz. venture capitalists, angel investors, banks and other institutions.
Love it or hate it, technical jargon and suit talk is the way the world works specially if you are about to step up your game as an entrepreneur or a solepreneur by adding up some capital we will be sharing the basics of the process in the next few days.