8. Seed Funding
Seed funding is enough small business funding to keep you going for three to six months. It helps your business to get ready for the next step. This next step could be anything from developing a prototype to launching a viable product to the market.
Another source of funds could be from customers themselves as they buy your product or service. If you don’t have a final product out yet, you may be able to resell related products in your target market. This enables you to generate a revenue and develop a track record with customers, while gaining more knowledge of your customer.
If you’re looking for seed funding investors here is what Matsi Modise has to say:
“If you’re going to try and attain seed funding, you’re probably going to struggle. Investors want to see that you have a proven business model before they invest, so you need to bootstrap for a while and prove that your business is working,” she advises.
“Once your business has been up and running for a while it becomes far easier to get funding. If you have a great business, you will find people willing to invest.”