Be Funding Smart
Depending on the business model, your business may or may not require capital at the start. For instance, if you’re starting an online, client-facing service business like an accounting firm for vegan businesses, you won’t need much upfront cash to get started. As long as you have a laptop and a website, you’re good to go. On the other hand, if you’re making a physical product, you’ll need to seed the cost to create a proof of concept and/or a minimum viable product to take to market.
There are several ways to fund your business in the beginning. A typical funding path for a product-based business model usually progresses in six steps (give or take a step or two):
Self-funded: use savings or income from your job or passive streams to get things off the ground. Many successful businesses and projects began life as side-hustles.
Friends and family: lovingly tap into that wonderful support network for help. This help could come as a loan and/or as your first equity seed investment.
Small business loans: banks, other similar lenders, and credit unions offer loans for small businesses.
Equity crowdfunding: this used to be restricted to accredited/sophisticated investors, but in recent times, it has been opened up to the general public (retail investors) in some countries. There is a growing number of equity crowdfunding platforms such as Seedrs, Republic and Kickstarter.
Start-up Accelerators: in exchange for equity percentages of usually 5-15%, you gain access to their community of resources and mentors to help you grow as a CEO. You also win introductions to their network of investors.
Private Equity and Venture firms: you trade larger pieces of equity for much higher levels of cash investment.
When you’re looking to get your vegan start-up off the ground or to bring your first product to market, it’s critical that you find the right funding partners to support your venture. Of course, you want monetary investment, but you also want ethical buy-in and mission alignment.
The above is from one of our giveaways entitled “10 Tips to Build an Ethical Plant-Based Business that Lasts”. Visit our Useful Resources page to download it for free! We hope that it will bring you lots of value.
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