Use Customer Cash to Finance Your Start-Up

• Autores: John Mullins
• Localización: Harvard business review, ISSN 0017-8012, Vol. 91, Nº 7-8, 2013, págs. 19-21
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • The article looks at the financing of start-up businesses, as of 2013. It describes the benefits of using negative working capital, or advance payments from customers as a source of capital to finance early business operations, in lieu of seeking venture or other investor capital from the beginning. It outlines several models of customer funding for new businesses. It notes one model involves customer deposits, citing Indian online travel service FlightRaja, since renamed Via, whose customers were travel agencies lacking high-speed Internet connections. Other models discussed include subscription services and creating a new product under contract with one customer, then standardizing it and selling it at a larger scale.