Growing or starting a business takes money. Some people either have the funds or find financing to cover the expenses of starting or growing a business. But sometimes becomes necessary to find capital else ware. Whether it was planned or unplanned there my come a time that you need to raise capital from investors. When it comes time to seek capital, make sure you don’t make these mistakes.
Make sure you understand what may be involved and how much of a commitment it may take. Companies often underestimate the time and commitment needed for fund raising. There are factors to consider. A good well thought out business plan will go a long way. Making lists of prospective investors you may want to target will save you a lot of time. You need to plan for negotiations which can sometimes drag on.
Most fund-raising efforts will include some kind of presentation. Make sure to hone your presentation skills. Poor presentation skills can ruin a good opportunity. Investors are often inundated with investment opportunities and will be turned off quickly by a poor presentation. If neither yourself nor any one on your team has good presentation skills it may be worth it to hire some professional help. There are many presentation and public speaking coaches available.
So, you’re asking for money from smart investors and they’ll have questions. One sure fire way to lose the interest of investors is if you don’t have a good explanation for how the money they invest will used. This can be part of a good business plan. You must have credible use of funds forecasts based on multiple funding scenarios. This is important so do the work beforehand.
Fund raising can be a challenging undertaking and can make or break your plans. As they say, “failure is not an option”. This is not something you want to take on alone if you can help it. Whatever help you can get will make your chances of success that much better.