Entrepreneurial ventures are constantly in the market for new capital. Experienced entrepreneurs realize that the financing of companies is done in stages and that they have to be flexible in identifying the latest trends in financing.

For many startup entrepreneurs, initial financing can be the hardest part of launching their new business. It is a popular misconception that an idea, a startup team, and a preliminary business plan will get them in the venture capitalist door. They expect to exit, happily, with the check in hand.

Unfortunately, traditional venture capital, i.e. funds supported by institutional investors, only finances a fraction of the new companies started each year. Over 90 percent of startup money comes from private sources and it is up to the individual entrepreneur to identify and sell their project to these financing sources.

Begin With a Business Plan

Whether you need to raise money or not, any prospective venture should begin with a business plan. This should include: