6 Important Tips When Seeking Funding.
One of most difficult times with entrepreneur is to raise fuds for their desire business, and unless you’re dipping into your own private fortune, you’ll probably have to spend some time fundraising to collect enough capital to start your project. If you haven’t been through the process before, the experience can be even more harrowing, since you won’t be familiar with the customs and conventions of fundraising. Consider these steps to increase your chances of being reconsidered, improve your potential for obtaining financing in the future and in general relieve the stress of securing funding. so here are 6 important tips when seeking funding
1. Be Professionally . This goes without saying, but as you’re going through the steps of fundraising, keep your behavior and actions as professional as possible. It’s not disrespectful to follow up with a possible investor, even if they’ve said “no” to you before, but if you hound them constantly with no new information, you can rule out any possibility that they might reconsider you.
2. Understand That Achieving Funding Is A Long-Term Goal. You aren’t going to get your business funded overnight unless you’re incredibly favored. If you’re passionate about your business idea, you’ll likely want to get started as quickly as possible, excitedly counting down the moments until your business can launch. However, fundraising is a long-term process that is going to keep your project at a standstill for longer than you’d probably like to believe.
Even after getting a commitment for funding, it can take months before the deal is closed and the capital is ready to be used. Fundraising is a long-term goal and a long-term process, so don’t let a short-term obstacle get in your way.
3. You May Get A ‘’No’’ From Those You Need Funds From. Great business ideas aren’t explosive hits immediately. They are tempered with obstacles, failures, and of course, rejections. Remember that some of the greatest business ideas of our generation were rejected multiple times before they were finally propelled to a stable platform. Most successful entrepreneurs will happily recount for you the countless times they’ve been rejected over the course of their careers. Take solace in the fact that anyone who’s ever accomplished anything has done so only after getting rejected first.
4. Contemplate On Different Options. There’s no right or wrong way to pursue funding. If one channel seems to be generating more obstacles than opportunities for progress, it might be time to change up your strategy. When most people think of raising capital for a business, they think of angel investors or private lenders, but there are several other options available. For example, you can apply for loans and grants through both federal and local government programs for small businesses such as those offered at sba.gov, or you could pursue crowdfunding through sites like Kick starter or GoFundMe.
5. Consider Your Business Model. Use this initial rejection as a learning opportunity. Take a look at your business model for any major flaws or weaknesses, or flat-out ask your rejected why he/she chose to pass on your project. It could be that your research does not support your assumptions as closely as you thought, or it could be that your profitability is unpredictable over the course of an extended period of time. Fixing these gaps will make your overall business idea more attractive to other potential investors, and could be enough to change your initial respecters’ minds.
6. Improve On Your Pitch. Your pitch is the consolidated version of your business model, and it needs to be strong in order to capture the attention of your potential investors—this is especially true if you’re involved in crowdfunding. Over the course of a minute, or a couple of sentences, you should be able to explain your business concept and exactly why it’s a valuable investment opportunity for your intended prospect.
If you’re fundraising and already encountered a no, then congratulations. You’ve successfully completed the first step of the journey toward funding your business. There are dozens of routes to successful fundraising and none are straight. So when you encounter a major obstacle, take a minute to breathe, re-evaluate things and then keep working toward your ultimate