How to secure funding to run your own business
In the ruthless world of business it can be a struggle to secure investment, and gaining funding for a startup can be arduous and disheartening.
Before winding up in the boardroom of a venture capitalist desperately trying to form a convincing pitch, you might want to plan ahead, adding in some key information that will be sure to pique their interest.
While there’s no go-to structure for a perfect pitch, putting yourself in the shoes of the investor will help you realise that there are some elements outside of revenue projections, comprehensive business plans and financial models that are crucial to securing investment.
Here are a few pointers for anyone looking to get their hands on those all-important funds.
As well as reciting your revenue projections, try providing a clear, effective and executable plan to capture and retain customers. This will illustrate the effectiveness of your business strategy a lot more clearly than a list of figures, and could capture the imagination of your potential investor.
Commit to the cause
When pitching, it’s vital that you display your commitment and ambition – don’t forget that great business ideas often fail if the person behind the business is disinterested. The investor will want to see that you are the type of person who is willing to see things through to the end, meaning you will have to prove that you have what it takes to execute the business plan and carry out the vision.
Demonstrate your ability to be flexible, as not every investor has the same expectations. Proving that you’re prepared to handle any objection or counter-offer thrown your way will illustrate your confidence in the business and, like the previous point, ultimately help determine your commitment.
Ask for advice
If the investor shows interest in your plan, but is unable to promise funding, then consider asking for their advice. It costs nothing and can prove incredibly helpful; they may even know a potential connection to pass your information along to.
At the end of the day, it comes down to proving your business plan is durable but also showing that you’re the right person to drive the idea forward and turn it into a success. It’s worth bearing in mind that an investor will not only be investing in your idea, but also you as a part of the package.