Financing your startup

1. What, how, how much

“Before you can go out and raise money, you need to know three things: what your idea is, how is it going to be put into life, and how much will it cost,” says Holter.

First of all, you should therefore work systematically with your idea. Think through what you want to do and what needs your idea should cover. It must be a product or service that people actually want to pay for. There’s a lot to consider in the planning phase, so it’s a good idea to use a good template like Business Model Canvas or Lean Canvas. Think early about financing, and make a budget to find out what your capital needs are and what investments you must make. If you need help during this phase, you can contact our startup advisers.

2. Investigate support options

Even if it can be difficult to get, there are many different support schemes for those who want to start their own business. Check out Altinn Check Altinn’s overview of all of the government support schemes. Also check whether the municipality and county you live in have any schemes and grants. schemes and scholarshipsEspecially if the business creates jobs in a smaller municipality or is being started by women, there may be grants as part of the municipal business fund. Also check Innovation Norway, NAV and Legathåndboken (the Norwegian grants handbook) for other support options and grants.

3. Invest in your own company

When you need money the most, the fewest are interested in investing or providing you with loans. The risk is always greatest at first and often depends on private contributors at this stage, whether it's family, friends or money from their own pocket. Before you quit the job and make a full effort, it’s a good idea to have solid equity in stock. Maybe you can combine a job and a business in the beginning until you see that your idea is achievable and this can actually become something? Using equity will also reflect positively when you might want to search for investors or loans in the bank. Show that you manage to master the first part of the project yourself and that you really believe in the idea. Who is interested in investing in your company, if you are not even interested yourself?

4. The art of convincing investors

“Research shows that there is less investment in female entrepreneurs than men on a regular basis. By preparing yourself well and understanding what investors are looking for, you increase your chances, says Holter.

It can be useful to carefully plan meetings with potential investors. Find someone who’s relevant within your field and familiarise yourself well with what they’re working on and how they’re thinking. You often don’t have more than 3-4 minutes to convince. For someone to invest in your company, it must pay off for them, and investors are often focused on realistic and specific goals. Present what you have done so far and have a prototype ready. If you solve a problem in the community, leave the focus on what you’re solving, not how. If you are unsure whether this is enough, you can contact our start-up advisers for guidance.

5. What about bank loans?

Many people get in touch with the bank to get financing for their start-up. This can be done, but it is important to be aware that bank financing usually requires the company to have revenues to show. If you still have a way to go before you’re generating revenue, then equity, support schemes and investors are a more likely route in this phase.

“If you’re looking for a loan in the bank, it’s important to have everything in place. Present a business plan and detailed budget, and show that you have operability The bank must believe in your project and that you actually have good opportunities to succeed, says Holter.