Once the concept and preliminary plans for a new business are in place, finding funding in Oregon and elsewhere is sometimes a far greater challenge. Even where business formation has been accomplished with the assistance of a business law attorney, obtaining the funding to move forward may still be a major obstacle and point of stress for the company. Experts suggest that the new entity join its business’ community and start some heavy-duty networking.
This is a time-intensive project because the startup’s founder(s) do not know precisely where that funding will come from at first. Therefore, there is a need to talk to as many people as possible in one’s particular business community and to keep networking until the funds are located. In addition, the startup’s founder(s) must do their own due diligence and research the venture capitalists and angel investors that have expressed an interest. A particular investor may not be appropriate for the business selected.
It is suggested that, where the investor is not the right fit, there should be a courteous interchange, but the founder(s) should move on to find a more appropriate investor for the project at hand. Therefore, experts in business formation and startup financing recommend that the new company engage in aggressive networking. The company should form relationships with business contacts and other companies. The new business owners may start with companies that they already know.
It is also important to have a financial plan in mind when approaching investors. Know how much you need and throw a little cushion on top of that for safety’s sake. Whether the business is located in Oregon or another geographical area, the important key to raising funds for business formation or for moving to a new level will be the degree of focused effort that an owner puts out there to attract people to the visions of the new company.