Finding the investments for your start-up can be an intimidating exercise, no matter what stage of the funding cycle you’re currently situated in. Continuous, long term backing is vital for the permanence of any business, and is a core aspect of development and expansion.
Luckily, there are pointers and tricks that you can take note of to support your efforts. You’ll improve your chances of exciting potential investors and obtaining that crucial cash.
Whether you’re targeting investors or determining what’s best for your business, we’ve got the essentials covered below.
Evaluate Your Current Funding Stage
Are you earning revenue on your services, and how well developed is your product? These questions will determine where you are in the funding cycle, and will guide you as to the finances you should be seeking out.
If you’re looking to gain investment, it’s essential to show you have an awareness of your current place in the funding cycle. Those looking to fund your business will want to see self-reflection and awareness.
Be Transparent About Your Motivations for Funding
You’ll need to show that you have a thorough understanding of the different requirements of each funding stage. The amount you ask for will need to be realistic, sensible and appropriate with relation to the targets you set out for your business.
Provide proof and evidence to those you’re asking that you have a specific, clear need for investment. Show that you have a strong direction and provide a well-documented pitch that boasts a solid vision and personality.
Be Aware of Your Targeted Investors
Always take the time to research and understand your investors.
Be aware of general behaviours and risk appetites of investors, and how they differ at each funding stage. You’ll have a better understanding as to which approach is best suited for your business, and how you are generally perceived by others in the industry.
Your finance needs, business milestones and current progress will all be factors in determining the types of investors you’ll attract. It’s important to be conscious of who you’re trying to appeal to, what you’re asking for and what’s most suitable at each funding stage. Asking for the wrong amounts, or too much, may significantly damage your chances of securing a deal.
Choose the Right Time to Make a Request
Before you make a pitch, discover and make note of the aspects of your business that are in need of expansion in order to move to the next funding stage. If you time your efforts successfully, you’ll be able to reach each long-term stage in a more maintainable manner, and you won’t come up short in services later on when new investors are interested.
Timing is everything when it comes to investment requests, so be sure to pick the best time for your business.