In most cases you will want to finance the development of a new product yourself, but some situations may occur where you wish to cooperate with other parties: partner companies, banks or venture capitalists.
Next to loans and credits the following forms of financing may be of your interest:
Venture Capital
• Informal investors: these are well-provided private individuals, ready to take higher risk than banks. Often they are coaches as well. Before informal investors decide to, he will scan the company. It is important that the product or service is not fixed to one person, which is often the case with consultancy companies or companies that provide business services on the base of an hour rate.
• Share holders: there are a few dozens of them active on the Dutch market nowadays. Some of them are independent, others are connected to multinationals, banks, insurance companies or pension funds.
Subsidies
The government is providing various subsidies and reductions of tax self-assessments for product development. Especially if your product/project is innovative for your company, for Netherlands or Europe it is interesting to take a look at the subsidy’s programs.
Pay attention to the following points if you consider to inquire a loan or attract any form of investment:
• An investor always wants his money back, with interest.
• Only if you invest in the project as well, you might be able to find a co-investor.
• Always be aware of your product and market. The strong conviction and the critical view at the feasibility of your plan are of the greatest help here. Be sure that your plan is bases on solid calculations, that you have an interesting story and can give the most exact answers to the possible questions.
• If your have already a successful experience with brining an innovation product to the market, please, mention about this in your plan.
• With the aiding of your owned capital to the project you will create a positive signal.
• Please, remember, that getting financial means can be a long process.
• Try to find some investors. A company with financial problems can be hardly interesting for the bank or investors.
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