Raising Capital? What is the best way to raise pre-seed capital for Entrepreneurs and New Business

What is the best way to raise pre-seed capital for Entrepreneurs and New Business

Small businesses don’t always have the luxury of pre-existing capital that larger firms might. When you’re starting out on your own, it can be difficult to find ways to raise capital for Entrepreneurs and New Businesses. Taking out a traditional bank loan or getting investors involved is often prohibitively expensive (unless you happen to know someone with more money than they know what to do with).

1. Bootstrap Your Way Up

One of the first options available to entrepreneurs is simply to wait until there’s enough cash put aside for capital. This means not taking salaries during the company’s early months, putting all revenue back into business operations until growth creates profits that can be used for pre-seed capitalization. While this is an effective strategy, it’s also one that has the highest rate of failure. An entrepreneur’s pre-seeds are their lifeblood, and denying oneself a salary during the company launch could mean shutting down before you’ve even had a chance to make your mark.

2. Use Personal Equity for Pre-Seed Capitalization