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Is Your Business Really Ready to Get Funding?

Well that’s a tough one. You can never exactly put your finger on something and say : “This is required to get our business funded”. Because there isn’t one particular thing that can determine something like business funding in the first place. It’s a cluster of things. There are many constraints, many levels on which you have to prove to your investor that what you are doing is going to fetch something for them in the future.

One of my friends had a start-up and I remember how I walked with him from one investor’s door to another to get funding. In the process we learnt many things and here I am going to share few most important of those.

1. Business Plan or Pitch Deck for Funding

If your investor wants to hear anything, it is just beep of the air conditioner.

Everything you say to an Investor is worthless unless you are talking with a business plan..

Right Business plan is the most important thing that we need to have and it has to be really good one too. It should talk about sales forecasts, the investments needed and how could those be revived.  The size of your market is also important and finally, the expansion you are thinking of with that money.

2. The Orientation

Emphasizing on last part of previous point, I would again remind you about the orientation i.e. direction in which you head with money. You have to know this very well because thats what he is interested in. It is very important to show him that your direction is the one where you and apparently he, would get great returns in future. Be well-versed with your market and have your numbers clear, as investors knows theirs very well for funding.

Credits : Dribbble- Zuck Dawg

3. Revenue Generation

Take a look at your current business & know where exactly the money is coming from. Then only you can look for newer channels for cash in-flow and talk of expansion. A person wouldn’t be interested in investing if it follows same basic model of revenue with same amount of time input. You need to be smart on this front before you try to raise any funds for company.

4. Look At Yourself & Weigh Your Position

Weighing your position in terms of competition and giants of industry can help you understand. With this analysis you will know time and fund required to achieve the goal. Once you know this, you might as well get a clearer idea of whether your business is ready for getting funded or not. Furthermore, managing your business with right Project Management Software helps you building things faster too.

Project Management Software funding

Credits : Dribbble Latham Arnott

5. Explain Your Product in a Lucid Language

The magnitude of uniqueness that your product has will be directly proportional to the magnitude of interest that your investor may shows. Hence make sure that there really are some distinguishing features you underline and present to your investors. Also, no one likes a very long synopsis of the whole project so keep it short and crisp. As a result,  you want your investor asking you for more and hence will be interested more.

There are plenty of things that you need to remember to get your business ready for funding. You are likely to meet many different people with different attributes in the shoes of investors. Although you may have to use different strategies to approach everyone, when it comes to sowing their money in a product, they are going to expect these five things from you and if you have these, you have their money too.  

Cheers!

 

   

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Jennifer Jackson
Jennifer Jackson writer at Managly, closing the gap between work and life. Recently moved to Brooklyn with graduation in Marketing sees business with a different eye. Specialised in Branding and Content Marketing Jennifer loves to promote positive business ideas.

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