1. Assessing Your Funding Needs:
2. Building a Solid Business Plan:
The second step is to create a business plan, solid enough to make investors interested in your proposal. Want to learn how to do it? Here is a simple guide to follow and write a business plan:
Write an executive summary of the business.
– Describe your company.
– Write your business goals.
– Describe your products & services.
– Include market research and competition research.
– Outline your marketing plan.
– Analyse your business financial status.
– Show future financial projections and forecasts.
3. Identifying Potential Investors:
- Crowdfunding: Relatively new but popular way of raising funds from common public as a donation or debt or equity who is interested in your products & services.
- Friends & Family: Very common for startups and a good resource of finances in the early stages of business.
- Angel Investors: Saviour of your business with simple profit deals.
- Venture Capitalists: Venture capital firms who are very selective in funding.
- Business Incubator: A program which is designed to offer support to businesses with amenities.
- Network: Getting investment through your professional network.
- Private Investors: Getting investment from a known wealthy individual.
- Events: Participate in investment events and look for better opportunities
A Note to Find the Right Investor:
- Check their investment portfolio.
- Consider their method of investment for your deal.
- Understand how much they would involve with your business.
- Check what value they are offering to your entrepreneurial journey.
4. Preparing Your Pitch and Documents:
- Give an elevator pitch.
- Tell your story.
- Present your market research.
- Demonstrate your product.
- Explain the revenue and business model.
- Explain your business model.
- Justify your funding needs.
- Illustrate exit plans.
5. Negotiating Terms and Closing the Deal:
But there’s one factor that can improve your overall closing. An impactful story and your vision. But here are some points to care for:
- Don’t fake your story.
- Don’t be overconfident.
- Show benefits to investor’s interest.
- Prepare a final message to investors.
- Set how you will report to your investors.
- Show them an exit plan.
Conclusion:
In this article, we have discussed how simply and step-by-step you can draft your funding plan. Now all you need to do is to follow the steps and make your personal draft for business needs.
Most importantly, set a fixed amount of investment and solidify how you’re going to utilise that. Create a presentation with all major details of the project and ensure that it’s engaging and simplifies the whole model & potential of your business.