The Process of Finding Funding

Table of Contents

Introduction
Entrepreneurship Peculiarities
Entrepreneurship Concepts Application
Conclusions
Reference

Introduction

The issue of investment is a primary concern for both an experienced entrepreneur and a beginner. The choice of funding opportunities predetermines the development of a company and its place on the market. It can influence stake distribution and stimulate the companys development.

Entrepreneurship Peculiarities

In the process of searching for funding, it is important to consider the size of a venture. Thus, venture capital will be suitable for bigger projects since it suggests higher funding amounts. At the same time, angel investors although providing smaller amounts of funds will satisfy smaller enterprises at the initial stage of their development. Moreover, angel investors will not demand as much stake as venture capital. In the case the optimization of production is needed, a bank loan can be applied. Banks have bug funding opportunities and can also secure funds.

Entrepreneurship Concepts Application

Any entrepreneurial idea should be properly planned, evaluated, and developed before the implementation and search for funding (Hisrich, Peters, & Shepherd, 2017). The idea stage does not demand to fund. The following concept stage may need finance to develop a model. For example, in the case of the car industry, it will include the development of the production-intent prototype. The next stage of product development will include the creation of a working prototype. After the product is launched and the production is powerful, a dealership network should be created. It will help to sell the produced cars. After some time, modernization of production will become a necessity. It will be time to attract a bank loan to optimize production.

Conclusions

Generally speaking, any project should pass certain stages from idea through development to implementation. The success of a venture depends on the careful evaluation of every project stage and the proper selection of a funding model.