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5 Tips On Raising Money

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Entrepreneurs know that raising money to start your business is one of the toughest things you have to do. Competition for funds increase every day so your chances of securing an investment grow slimmer. However, finding an investor is not impossible and fundraising does not need to be stressful. Here are some things you can do to take some of the pressure off and start rolling in investments.

Tell Your Story

Tell them what your company is all about. If you are raising money for a certain purpose, people are more likely to support it if they see or know where their money is going. You have to make investors understand how your product or service will change the lives of your potential customers. In TV shows like Shark Tank it is common to see entrepreneurs give the investors their background and the background of their company in story form. Try to evoke emotion in your investors so that they will be more inclined to write checks.

Determine The Amount of Money You Need

When you’re fundraising for your business, you’re using other people’s money. Make it easier for them to part with their money by telling them how much you need. Get quotations, documentations such as bills and business costs and your business budget. You need to be able to show investors that there is attractive profitability once the business takes off and the bills are paid.  

In this connection, you need to keep your business costs low. Investors like to see attractive profit margins so that they will be able to get a return on their investments as soon as possible.

Approach Relatives and Friends

You can perfect your sales pitch by starting with your family and friends. Invite them to become shareholders of your company by telling them of the advantages of joining you in business. If your relatives like the idea, they become shareholders of the business. However, make sure that you retain majority ownership of your business. If you sell too much, you become diluted. This could spell trouble if you need to raise more funds.

Borrow From Banks

Banks are good options for raising money. You don’t need to give them equity because they will be lending you money. For this option, you need to show banks that you will be able to pay your loan. Documents like cash flow and collateral are needed to secure a bank loan. Generally speaking, banks are more comfortable with lending their money to businesses that have a proven track record. If the business consistently sees profit and this profit is good enough to cover additional debt, then the loan is more likely to be approved. If you’re a startup, you need to prepare a thorough loan package with explanations how your company will grow and repay the loan.

Keep Business Costs Low

Now that you have money, it is normal to be tempted to buy new office equipment like computers, desks and chairs. You have to resist temptation because this is not why you wanted to start raising money in the first place. Burning through your investment is the first mistake new entrepreneurs make. Once business capital has been secured, you need to be careful how you spend it because everything is an expense to your business especially if you’re not profitable yet. Avoid getting burned by cutting down costs like working from your house instead of renting a fancy business address or buying new furniture. It might not sound ideal but the savings can be put in other areas of the business that really need money like new manufacturing equipment, automated software that will make service faster or hiring new people to make more products if supply is behind. Keeping business costs low does not only prevent you from burning through capital but it also improves your profit margin.

Starting a business always comes with new financial responsibilities on top of personal expenses like rent, mortgage, student loans, gas and utilities. Many entrepreneurs learn that starting a business is not the easiest way to make money; it is the easiest way to burn through it. Starting a business can be a nerve-wracking track, but it can also be rewarding.

Business

SpaceX’s Falcon Heavy And The Race To Space

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People are looking to the stars again — even though they might just be looking for Elon Musk’s midnight-cherry Tesla Roadster that’s somewhere in orbit between Mars and the asteroid belt. The successful launch of SpaceX’s Falcon Heavy rocket, which sent that car on its potentially billion-year journey, has everyone scrambling to get their rocket program on the same level as SpaceX. What does the Falcon Heavy launch mean for the future of space travel and the possibility of a new space race?

The Falcon Heavy

On Feb. 6, Elon Musk and SpaceX celebrated the maiden voyage of the Falcon Heavy. This miracle of engineering was launched successfully at 3:45 p.m. Eastern Standard Time, powered by a whopping 27 Merlin engines — nine inches each of the side booster rockets, and nine more in the center core.

The two booster rockets successfully separated and landed almost simultaneously at Landing Zones 1 and 2 back at Cape Canaveral in a mind-blowing feat of synchronization — if you haven’t had a chance to watch the replay of this landing, you should. Go ahead, we’ll wait.

The third core, which was supposed to land on the autonomous droneship Of Course I Still Love You about 300 miles off the Florida coastline, didn’t fare as well. According to the post-launch press conference, the core didn’t have enough fuel to reignite all three of its engines for its final landing burn. It hit the water at about 300 miles per hour — hard enough to take out two of the engines on the droneship.

If the cameras on Of Course I Still Love You weren’t damaged in the crash, we may be in for some spectacular crash footage in the coming weeks.

It’s not a great loss, though — Space X wasn’t planning to reuse any of the cores from the Heavy’s maiden launch. The two Falcon 9 boosters that landed successfully are Block 4 style rockets — the ones that will be used for future Heavy launches will be Block 5.

Despite the spectacular failure of the center core, the launch itself was a complete success — pretty good for something Elon Musk was expecting to explode before it even made it off the launchpad. As Musk put it, “Crazy things can come true. When I see a rocket lift off, I see a thousand things that could not work, and it’s amazing when they do.”

Now that it’s off the ground and proven its viability as a reusable heavy lift option, the Falcon Heavy is much cheaper than any other currently available options. “At $90 million per launch, it’s the cheapest heavy lift option available,” said William Ostrove, a space industry analyst. “The Delta IV Heavy, for example, typically costs $350 million to $400 million per launch.”

The Future of SpaceX

Now that his Roadster is traversing the solar system, what is next for Elon Musk and SpaceX?

In the short term, the next big milestone for SpaceX and for the Falcon Heavy specifically is to get certified by the U.S. Air Force to carry secure and government payloads. The Falcon 9 received this certification back in 2015 and has since carried several military and classified payloads into their places in orbit. The next flight for the Falcon Heavy is scheduled for June for the Air Force — and depending on its outcome, it could be the flight that qualifies the Heavy for military and government contracts.

Next year, in addition to continuing to develop the Falcon Heavy, there are two more projects on SpaceX’s plate — Crew Dragon and the BFR.

Crew Dragon is an upgraded incarnation of the currently used Dragon capsule, but instead of just hauling cargo to the International Space Station autonomously, Crew Dragon will be outfitted for carrying astronauts into orbit and beyond.

This will likely become an essential part of the space program, or at least in getting America’s astronauts to space, especially with the current administration’s plan to defund the International Space Station by 2025 and hand it over to private investors, shifting that funding toward the goal of putting humans back on the Moon.

The BFR — short for Big F*****g Rocket — is designed for use a lot closer to home, at least to start. Once completed, the BFR will be even larger than the gargantuan Falcon Heavy. A BFR with a capsule could potentially turn a 12-hour airline flight into a 30-minute hop around the globe. It could also change the way we look at travel to the Moon, Mars and other planets, as well as facilitating asteroid mining to allow us as a species to take advantage of the resources in the rest of the solar system.

Experts estimate the BFR, once it’s off the ground, could turn space into a multi-trillion-dollar industry — currently, space travel is worth about $300 billion.

The New Space Race

The U.S. hasn’t really been in a “space race” since the 1960s, when we threw everything at the wall to see what would stick. This grand idea resulted in the Apollo program, and we sent men to the Moon for the first time. During his Falcon Heavy post-launch news conference, Elon Musk set forth a challenge: “We want a new space race. Space races are exciting.”

They most certainly are — and Musk isn’t the only billionaire with his eyes turned toward the stars. Jeff Bezos, the mind behind Amazon, is also throwing his hat into the ring, as is Richard Branson of Virgin Galactic, Tory Bruno of the United Launch Alliance and the Sierra Nevada Corp.

Bezos’ entry into the space race is his company Blue Origin — he’s launched and landed his New Shepherd rocket multiple times, even before SpaceX managed a successful landing, though all his flights were suborbital. Bezos was planning on his first space tourism launches in 2017, but that fell through. Musk and Bezos regularly launch friendly barbs at one another on Twitter, but when it comes down to it, they each support the other’s endeavors.

Virgin Galactic, headed by Richard Branson, has been trying to make it into orbit for a while now, and has even started selling $250,000 tickets. Unfortunately, Virgin Galactic has hit a few roadblocks, namely the explosion of the space plane during a test flight in 2014 that killed the copilot of the flight.

The United Launch Alliance (ULA) is the mind behind NASA’s Space Launch System and the Delta IV Heavy rockets. Bruno and Musk are butting heads on Twitter, but Musk isn’t worried. He’s actually said if ULA can launch a national security mission before 2023, he’ll eat his hat — with a side of mustard.

The Sierra Nevada Corp. (SNC) is one of the most exciting entrants in this space race. Their space plane, dubbed Dream Chaser, completed its first successful suborbital test flights in 2017 and recently landed a contract with NASA for an ISS resupply mission in 2020. Musk might have some stiff competition if SNC can manage to nail this launch.

SpaceX might be the first one out of the gate, but they’re not the only game in town anymore — and that’s exactly how Elon Musk wants it. “I think it’s going to encourage other companies and countries to say, ‘Hey, if SpaceX, which is a commercial company, and it can do this and nobody paid for the Falcon Heavy, it was paid with internal funds,’ then they could do it too. So I think it’s going to encourage other countries and companies to raise their sights and say, ‘We can do bigger and better,’ which is great,” Musk said at the post-launch press conference.

The Falcon Heavy launch was history in the making, and being able to witness this launch is an amazing feeling. You can expect SpaceX to continue to push forward in their quest to find new and innovative ways to explore the solar system, but they’re not the only company we need to watch anymore — they’re just the only ones with rockets in the air. Elon Musk may have provided the spark to start this new space race, but he’ll have to come up with some amazing innovations to stay on top!

And if this launch has taught us anything, it’s that we need to keep looking at the stars — and believe crazy things can happen.

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We need to talk to Marketing and PR Agencies about Amazon

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Owner’s Magazine is writing an article featuring the top Marketing and PR Agency’s perspectives on why Amazon should choose their city as it’s next HQ. We’re reaching out to all marketing and PR agencies in each of the 20 cities on Amazon’s list for a private interview. If you’re a marketing or PR agency, then we want to talk to you to get your perspective of your city. Your interview and responses will be featured in an article published featuring your city.

Here are requirements to qualify to be featured in article:

  1. Must be legally classified as a Marketing or PR Agency (cannot only be a service you offer)
  2. Company must either be headquartered in a prospective HQ2 city or have an active office there (No satellite offices)
  3. Company must be at least $1MM+ revenue anually

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0 – 100 With Peter Hwang CEO of Bite App Inc.

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bite app inc.

0 – 100 With Peter Hwang CEO of Bite App Inc. Exclusive interviewed Peter Hwang, current CEO of Bite App Inc., a startup company based in Philadelphia that’s changing the way you discover your next meal.

“Bite is a mobile app that makes deciding what to eat easy by mitigating the time and energy required to evaluate a restaurant dish. It also provides a platform for users to share useful, concise reviews that help improve others’ dining experiences.”

 

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