How do I get funding for a business based on expert industry knowledge of starting a company that builds a database combined with music production and song written ready for Artists to perform? Word of Mouth advertisement is the best strategy to market a great service. Once my company breaks through and becomes successful by the popular Artist getting high platinum record business will flow in
Really depends on the kind of funding you’re seeking. Start by keeping in mind, all sources of capital have an expectation of outcome – what will the money do for the money invested?
- Grants: effectively deliver the impact sought
- Loans or debt: pays it back over time, plus interest
- Business partner: someone who wants to do what you want to do, and puts in the capital
- Customers: yes, customers. Most new ventures are bootstrapped (overwhelmingly most) so how could you fund this by serving customers who pay for something
- Angel investors: a personal interest but also one in which the investors expect a far great return in a number a years
- Venture capital: seeks a substantial outcome (20x return on capital) by way of getting aquired or going public
With that in mind, you can start to pursue which makes the most sense for what you’re doing.
How do you start that pursuit?
1. Marketing – studying the market, competitors, partners, and opportunities
2. Developing a team of people who can accomplish that
3. Delivering a minimally viable version of what you want to be doing, in order to prove 1 and 2 are capable of delivering on the expectations of the capital.
Then you raise money.
Network your ass off. Pitch constantly. Build your audience, generally on LinkedIn and Twitter, these days, being most effective for investors.
Doesn’t hurt to go through an incubator or Accelerator to get that under your belt. We teach all this and help in our programs. Maybe worth considering: https://mediatech.ventures/apply-for-our-next-cohort/
Great feedback. We’re building this here in Texas now and so far have been self funded. Looking forward to getting involved with some of your accelerator programs in Houston.
Where should we go at SXSW? Let me know! Putting our schedule together now.