Financing your start-up – we need money to make money!

“In investing, what is comfortable is rarely profitable.” – Robert Arnott

            We live in a period of time when more and more people decide to break the shackles of working for an organization and find the courage to build something of their own. Dreams, innovation and bold ideas start to become reality and more and more join the “dark side” of entrepreneurship. For most of the freelancers and young entrepreneurs on the market, what they do and how they see things are the best solutions for partners and customers and they bet all in with that in mind. But where do you get the financing to start your journey towards your goals? There are no gold fish and genies in a lamp on the market. Warren Buffet said: “Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1.”, so first thing, make sure your idea is worth it.


            Let’s take a look at some financing options, just to get you started.

1.      Your own savings. We all know that the best money is other people’s money. But you must first prove you believe in your idea and then ask for someone else to do that as well. Yes, eliminating your safety net, the white money for dark days, will take away some of the comfort, but risk takers show the best return to others.

2.      Friends and family. It seems easy, they are close to you and they trust you and they will listen to your proposal. On the other hand, you have to be professional. Present them your business plan and tell them you also have money of your own in it. Give them a way out and make sure their decision is objective.

3.      Bank loans. The business plan usually makes the difference. Social impact and industry are factors weighing heavily on the decision to receive or not the money. A bank will look thoroughly at your business plan, but you can get more money than from your relatives. Or at least this is how it is supposed to be working. In Romania, especially after the crisis hit, it is almost impossible to finance your start-up with a bank loan.

4.      Private investor. Not so visible and accessible, but in your area you can find private investors. Venture capital companies and business angels are waiting for the next big return company to emerge and invest in it. You basically sell part of your company to them, but if they like your plans you get more than just money, you get a partner. They will be very interested in helping you grow and maybe one day go public because they stand to gain a lot from your big payoff.

5.      Crowdfunding. For small businesses and freelancers this is an incredible financing tool in the last years. Think of it as the practice of funding a project or venture by raising monetary contributions from a large number of people, typically via the internet. We all heard the story of that company raising a million dollars on Kickstarter or Indiegogo but it is very subjective. You need to get through and give them something they relate to.


        Yesterday we welcomed a new financing option in Romania, AeRo. It was created in order to offer to entrepreneurs a financing alternative for development. It is designed for start-ups and SME’s, based on the alternative trading market of BVB. The alternative market, existing since 2010, was redesigned and launched with great expectations. This will offer possibilities for companies not yet meeting the demands of the Regulated Market. You can find more details here On the first day we already had two companies listed on AeRo, they were Delivery Solutions and Carpathia Capital

BVB general director, Ludwik Sobolewski, sums it up perfectly: “AeRO means giving a chance of having capital to companies, and now to prove we have investors. The capital market is a wonderful place where companies meet investors. AeRo will be a Romanian brand and, also, an international sign of the modern capital market of Romania.”

*Mihai Chiratcu is an opportunity creator, trainer and free man. After 10 years experience in sales and business development, he is using the knowledge gathered trying to bring a new approach in training and business consultancy. He brings you every Thursday special information and gives advices through the section “Business Opinions”. For more information, you can find Mihai at

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