Startup Funding: The Startup Financing Models For Sustainable Business

If you wonder how you can start a business, then you make big decisions regarding the startup financing models to use. Before making any big decision, you must be organized and should consider the pros of hong kong startup funding to build out two aspects:

• business plan
• budget

You may include details of the products and services in your business plan, and draft the short-term and long-term goals.

Debt versus equity

If you are planning to borrow money to fund a business, you may want to build equity financing to balance the amount you owe to others. You can sell interest in your company that helps ensure to have a healthy level of debt versus equity. Figuring out how to finance the startup business feels overwhelming, especially when the traditional business loans need one or more years.

Startup funding

Startup funding or startup capital is the money needed to establish a new business. It comes from various sources and is used for any purpose, which helps the startup go from idea to actual business. There are top sources of Hong Kong startup funding to choose from. The ideas of these top sources come up with the following:

• personal savings and credit
• friends and family
• venture capitalists
• angel investors
• banks
• crowdfunding

There is a broad range of options when starting up capital. There are types of business startup funding and you can choose a startup business funding you think is the best for your new business. You may consider several factors when choosing startup funding:

1. How much funding do you need
2. How much are you self-funding
3. Do you have any business credit, business history, or cash flow

It depends on where you raise the startup funds. If you need to raise money for theoretical high-development companies, funding rounds with venture capitalists and angel investors are more likely to result.

Government funding plan and support

The Hong Kong government has spared effort in promoting I&T development. The government has stepped up funding support for I&T development by the following:

• developing IT infrastructure
• promoting research and development
• pooling talent
• support enterprises
• promoting re-industrialisation

All these are achievable through using this funding plan and support from the government. Technology has played a huge role in the growth of a business, especially a new business having problems with its startup funding.

Supporting research and development

Research and development is used to describe a set of activities that companies launch to innovate and introduce new products/services. Research and Development is the first stage in the development process. Companies need knowledge, investment, and talent to further R&D goals and needs. The purpose of R&D is to take new products/services to market and add to the bottom line of the company.

The R&D concept is widely linked to innovation both in the corporate and government sectors. It allows the companies to stay ahead of the competition. Without the R&D program, the company may not survive on its own and rely on other ways to innovate, engaging in mergers and acquisitions or partnerships.