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    Try to save on profits as much as you can. Ride the non-existent period with dignity until you get your business to be somewhat profitable. With acquired funding for your start-up the last thing you could want, is to be in debt if it fails.

    Reactionary approach however with solid foundations.


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    Welcome to 2014. The best way to go with a new product is through crowd funding. Keep yourself and your start-up liability free.


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    There are a lot of ways to raise capital for a new business. Since your product is based on education I believe lot of government agencies who promote education along with investors who are interested in what you are offering can provide you grants and loans which can be paid in a further future date. Most people nowadays are looking for investment and if yours is a good one they would definitely look into it.


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    I say raise the money independently. Do it with Kickstarter! I can guarantee you that it's a good start to fund a business. A lot of people now have proven that effective.


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    It's funny though but most of the shortcoming effecting your business that you've been overlooking, are ironed out when you're looking for funding.


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    In my opinion, I will suggest that you raise capital by talking to friends and loved ones about the business for them to invest or to get an investor. With this method, you won't have to pay interest at the end of the day. I will not advice you taking loan.


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    Raising capital is a major issue which an entrepreneur has to address when starting a business. While looking at the various methods of raising capital, one has to first ascertain what will be the risk profile of the business and the expected return from the same. The most common methods of raising capital include debt and equity. Both these methods have their pros and cons. For instance, though debt carries a liability of interest which occurs regularly but is easy to procure. And in the case of equity, though it does not carry a charge of interest, it is difficult to procure as investors will only contribute if they have confidence in the feasibility of the idea.


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    Okay, this thread seems to be eight years old, but since there is a renewed interest in it, I'd say that a mixture of angel investment, community investment (ala Kickstarter), and bank loans are the usual way to get this done. Kickstarter is best done as an advertising tool for most business models, however---unless you are a specific niche market (video games, software) it's unlikely that you're going to get all the funding you need from this one outlet. Kickstarter raises awareness to your project in a quick and allegiance forming way. People are likely to buy from you after they give to you, and you've made a lifelong customer before you even made your product!


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    Kickstarter is perfect for this if you are confident with your educational product. First do a video of what your product is about. Display what makes your product so unique to convince people to fund it for you. Give everyone some sneak peek on how your product will teach the target group (I am assuming children?) a new form of knowledge. Give something back to those who fund a lot. For example, those who funded more than 100 will get a free product.


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    There are many different ways to raise capital for a new business. Choices are loans, angel investors, crowdfunding, fundraisers, your own savings and many more. There just needs to be information for the public to see that you need the money for a particular project. Also, you will need to prove you know how to handle money well. In short, you need to be trusted. You can show them by having an event that will showcase your project and see there are benefits for helping out.


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