Pde » Financing» Capital Investment for Turning: What Reasons to Get It
Capital investment is a way to inject a certain amount of money into some financial activity and make it grow, thereby increasing the value initially applied. This type of practice does not guarantee immediate return and you need to get some information about it.
Investments, as well as any form of trading that involves money, should be done in order to observe some care so that you do not have any unpleasant surprises in the future. The best guarantee in this case is undoubtedly to be very cautious in making any decision.
After all, it is important to remember that these investments can be profitable, however, as long as you know your business and know how to look for that type of option that may be useful for your company and reduced risk.
For many entrepreneurs, this type of negotiation may seem a bit complex, so in this post we will bring you some advantages of getting a capital investment for your company and what the main modalities. Keep reading and understand more!
Types of Capital Investment for Turning
Studying all the possibilities and knowing how much you need to make your business take off is limiting the chances of something running unexpectedly and avoiding frustrations. Therefore, investing capital for turnover, expansion and cash flow is very important for you to achieve your organizational goals.
Check below four types of capital investments that may be of interest to your business: Seed Capital; accelerator; equity, subsidized capital and crowdfunding.
This is the capital used at the beginning of a new business and usually originates from personal assets, or with the help of friends and family of entrepreneurs to cover operating expenses and attract venture capitalists.
This term from English is self-explanatory, since it refers to the idea of ”seed” (Seed), that is, to sow a new idea, a new investment. In this modality it is more difficult to have people interested in buying the idea since the business is new. So it is interesting to research what is being offered and check what your chances of success are.
This modality is a kind of investment mentoring. The so-called Accelerators make the process of preparing the company for an investment and making it profitable. It is also part of the initial investment stage.
Equity (boot stratp)
Investment at the intermediate level where the entrepreneur enters the money without needing external help. When using personal savings, receiving inheritance, savings, among others. The term “boot strap” refers to “buckling your own boots”, that is, without needing help.
When the entrepreneur obtains the money without there being a need to return the amount in kind, or considered as a refund a social contribution. Non-governmental organizations can be examples of this kind of investment that is also targeted at intermediary companies.
With the globalization of the media, some advantages have also emerged in the investment world. Crowdfunding is a public funding system, where through an online platform you connect with potential investors. It is especially interesting for smaller deals, since donations are allowed up to 5 thousand reais.
In addition, there is the option to make some type of return to those who donate as gifts, discounts on services, or even set up a company in partnership, among other options.
Investment in working capital
Analyzing your situation before going after a capital investment for a spin is doubly important because in addition to you putting your business in, ie the name of your business in evidence for fundraising you will also be playing with your money or the to increase its capital. Therefore, it is imperative to be aware of all the details.
What do you think of this text on how you can benefit from the various types of working capital investment? Has it sparked your interest in deepening knowledge in this matter? Then, leave your comment below and share with us all your doubts.