CHAPTER TWO: Part C – In addition to having the qualities or qualities listed in part B of this chapter, I have highlighted six additional steps that you can take or implement to prepare yourself further for the ordeal you will encounter when trying raise funds for your business … Here are six more tips.
1. Plan the fundraising event itself
Once you have finished writing your business plan, it is recommended that you carefully invest your time and effort in planning this fundraiser. A good way to start the planning process is to make a list of the investors and lenders you plan to approach, along with their contact details.
Additionally, you should document the total amount you are looking for a raise and the deadline you expect to receive the funds you need. This plan will help you take action over time and stay focused.
2. Be analytical
Most investors and lenders won’t trust your idea or business until you show them a detailed concept analysis and your forecast. Don’t just state the facts; You have to use numbers to get your points and add weight to your predictions. You should also take the time to thoroughly research your business idea and develop a well-written business plan ( you will learn how to create a good business plan in the next chapter ). Investors will only invest in what they know and understand.
3. Be concise
Without excluding any relevant details, you should be able to present your proposal in as few words as possible. Most investors or lenders are very busy people who always multitask. So you would just tire them out and kill their interest in your idea if it took them hours of reading to understand your proposal.
If you have to submit your business plan, be specific and get straight to the point. After submitting your review / CV, you should then answer any questions from your investors / lenders. Focus only on the areas that interest or want to know about your business.
4. Be realistic
It is also important that you set a reasonable time frame for your fundraising plan. Always keep in mind that it will take some time for investors and lenders to analyze and think through your idea before giving their opinion. So never expect them to respond for hours or days. However, it is advisable and advisable to inform potential investors / lenders that there is an expected time frame in which you expect their feedback.
5. Know the right financing options and stick to them
If you are raising start-up capital for your business, there is a good chance that you cannot get loans from most banks and some other lending institutions as these institutions want some degree of security, reputation, trust and competence of an entrepreneur in fundraising. So by excluding these areas Do not go your list of options will save you time and frustration as you target more lenders and investors who are more likely to buy your idea.
6. Be clear on what you want to achieve
The world’s brightest business idea may seem like a gimmick if it isn’t clearly presented. So, clarity is a very important factor that can signify the success or failure of your fundraising quest. In written proposals, try to use images only if they clarify your ideas. In the presentation, you can add animations and videos, as well as graphics and other illustrations. And when you verbalize your ideas, speak clearly.
In closing, I want you to know that raising capital doesn’t have to be a long and long process. Although it is not an easy task, you can make it easier by following the points raised in this chapter. By following the tips above, more creativity on your part; You will be able to bring the confidence of investors and lenders, and all the money you need will flow to you.
- Go to the third chapter: Create a good business plan: why and how
- Return to Chapter 1: Prepare for the Challenge Participate in Fundraising
- Back to introduction and content