Raising Capital to Start Your Company

By Michael Bell Tuesday, June 4, 2013

Have you recently filed your Delaware LLC through Harvard Business Services, Inc. and are now looking to get your company off the ground by raising capital? In this article I am going to provide you some helpful tips on how to get started; being an entrepreneur has ups and downs and when starting a business, the funds are not always going to be available. If you’re like most business start-ups, you may need to start reaching out to investors to help raise capital.

According to www.go4funding.com; “Before a new business owner can raise capital for their start-up, they must first identify the different sources of funding, find one that is most compatible with their needs, and then meet the given criteria of the investor or bank. These crucial steps can mean the difference between successfully raising capital and leaving their new business ideas behind.”

Here are some basic guidelines:

  1. Research
  2. Identify Sources of Capital
    1. Equity Financing
    2. Debt Financing
    3. Secured vs. Unsecured business loans
    4. Different bank loans and online bank loans
    5. Government Funding and the Small Business Administration (SBA)
    6. What you need before going to an Investor or Bank
    7. Fixed vs. Variable expenses
    8. A Business Plan
    9. Professionalism
    10. Good Credit vs. Bad Credit

These are all great tips but before you seek out investors you are going to want to have your company formed and your operating agreement in place. It is generally a good idea to have The LLC Agreement, whether you are a Single Member LLC or a Multi-Member LLC, on file. The Operating Agreement is the legal binding agreement that helps to show the Ownership, Operations and Management of the LLC. The advantage to having your company filed here in Delaware is you do not have to provide the LLC Members' (Owners') information, nor the Operating Agreement to Harvard Business Services, Inc. or the State of Delaware. Our blog post LLC Operating Agreement 101 can teach you even more about LLCs and Operating Agreements. 

You should also protect your intellectual property with a patent, trademark, or copyright before calling on investors. There are many tips and tricks on how to raise capital, but in the end it’s about having all your ducks in a row to prove to investors you are a smart entrepreneur and worth their investment. 

More By Michael Bell
Leave a Comment
* Required
* Required, will not be published