<slider>
Let’s have a look at some examples of successful businesses in the crafts sector. These will give us a clue on what is important to be thinking about when starting a new business.

Here are the main success factors:

• Understand start-up costs
• Understand external funding
• Use funding formulas
• Use global fundraising

</slider>

<slider>
When starting your business, it is necessary to be aware of the costs that you will incur just to get started. These costs could come from taxes that you have to pay, materials you have to buy or artisans that you have to hire.

Let's have a look at the case of Ancient Greek Sandals company.
</slider>

<slider>
Ancient Greek Sandals

The company Ancient Greek Sandals creates handmade leather sandals for women. However, when they were starting up, they had to take into account the taxes for new businesses in Greece. If they would not have had these expenses included into their start-up costs, they might have found themselves with problems.


See a short video to help understand start-up costs here


</slider>

<slider>
So how much money you really need to start your business?

How do these expenses distribute themselves?
</slider>

<slider>
Hints inspired by our case studies

• Understand your legal obligations before starting your business.
• Outline what expenses you will have before you are able to make money.
• See if you can reduce these start-up costs in any way.

</slider>

<slider>
If you find out that you don’t have enough capital to start the company yourself, but think that your idea is really good, consider looking for external funding.
There are different external funding options, from taking loans to getting grants. Each type of funding with have its positives and negatives, so make sure to do your research.

Let's have a look at several options for External Funding.
</slider>

<slider>
As there are many external funding options, depending on many things such as start-up costs, expansion, etc. it is important to research what choices you have for your specific situation.

And an infographic about how startup funding works here


</slider>

<slider>
How do you know what option is best for you?

How can you prepare yourself for this option?
</slider>

<slider>
Hints inspired by our case studies

• Pick out an option that fits best for your business.
• Prepare your business plan and present yourself formally to whatever your external funding plan is.
• Fulfill what you promise to your investors.

</slider>

<slider>
One external funding option is using formulas, such as funding from different entities (that can be anywhere from small competitions to asking for money from the European Union).

Like in any type of external funding opportunity, it is necessary to really understand what you are applying for and how to apply for it. Most funding formulas have a specific ‘type’ of business that they work with. If you want to receive funding from this kind of capital, research what you are applying for before you begin the process.

Let's have a look at the case of European funding opportunities.
</slider><slider>
European funding opportunities

Receiving European funding is no easy task, but it is a possible source of future capital. When applying for funding, research past enterprises that have been funded, understand the process of applying for this type of funding, and take the time to make sure that your application is filled out correctly. Taking time to make sure you ‘do it right’ could be the difference between having someone read your application or not.



See a short video to help understand how European funding works here



Research EU finance options that might work for you here

You will probably have to do a lot of work to receive funding from this kind of souce. Be prepared to be turned down the first time, but don’t get discouraged. Refine you idea and your proposal, and apply again.
</slider>

<slider>
Hints inspired by our case studies

• Work with partners who have experience working with the type of funding that you are looking at.
• Make sure that you fill out the application in a clear, concise way.
• If you say you are going to do something, make sure that you have the means to do it.

</slider>

<slider>
Global fundraising is one of the options that new businesses didn’t have a few decades ago. There are many different global funding platforms that you can use where, instead of looking for a select few investors to invest large amounts of money, you look for many investors to give you small amounts of money.

This type of funding works only if many people are willing to invest small amounts (such as €5 to your cause). In many cases, in return for their investment, you will compensate your investors in the future with a gift of some sort. This could be anything from the product when it is finished to an invitation to a launching party depending on the amount donated.

Let's have a look at the case of Kickstarter.
</slider>

<slider>
Kickstarter

Kickstarter is only one of many crowdfunding opportunities. It is a platform that allows you to submit your idea to one of different categories (such as fashion, theatre, technology, food, etc.). You have to make an account and then follow the steps presented on the website. Be aware of what you have to do to be successful, and make sure you read the rules!


Watch a short video to understand making a Kickstarter campaign here



Have a look at the basic Kickstarter rules here
</slider>

<slider>
Hints inspired by our case studies

• Research what platform best fits what you are trying to achieve.
• Take time to make sure your submission is as good as you can make it.
• Prepare your campaign before you start – make sure to advertise and get the work out.

</slider>

<slider>
Are you ready to try it on your own?

Here are some questions for you to think of (assignments).

Research the different options that you have for external funding.
Keep in mind:

• The size of your business. Are you a Small and Medium-Sized Enterprise? If you are, what does that mean for your options? If you are not, what are you? And what does that mean for you funding options?
• Your clientele. Depending on who you are trying to reach, your options may be different. Is your clientele specific? If so, are there any funding options related to this group?
• Your product. What are you trying to sell? If it is innovative, can you generate attention this way? How are you trying to sell it? 

</slider>

<slider>
Are you ready to try it on your own? 

Here are some questions for you to think of (assignments).

After you are done researching, choose one possible external funding option and follow the process.

• Write down the aspects and requirements that you are able to fulfill and shine.
• Take note of where your business proposal fails for this particular option.

Once you have an idea of what your strengths and weaknesses are:

• Work to improve them.
• Find options that suit you. 

If you decide not to apply to a specific funding option at the end of following the process, do not worry, understanding how funding works is important.
</slider> 

<slider>
More information on this topic (additional material)

It is important to understand what you are looking for. Articles such as “Obtaining External Funding for Research and Creative Activities”, available here, can help you understand what you need.

Understand how to apply for EU funding. Take into account articles from the foundation itself such as this one: “10 top tips for applying for EU funding”, available here 

Use online resources to help you understand how to make your CrowdFunding campaign a success. For example, indiegogo founder published this short video giving advice about pitching ideas, available here
</slider>