April 7, 2011
Many entrepreneurs find that their company cannot be start-upped or that their first-stage business cannot be expanded due to the lack in capital. They cannot dispose of all the needed funds in order to turn their business idea into reality. There are several solutions you can turn to if faced with this problem. You can try gathering the needed amount of money from your family and friends, but this is a solution that works only rarely. In most of the cases, applying for external funding is the best thing you can do. You can ask for a bank loan or turn towards angel investors or venture capitalists. Even though there are plenty of investors worldwide, the demands for funding are numerous as well, so you have to be prepared to face your competition. In order to do this, there are several steps you have to follow.
Click here to download our database of investors now <==== Here are some tips regarding the things you should know in order to be able to raise capital:
- First of all, you should have a brilliant business idea that can be easily translated into big gains in a rather short period of time. Unless you prove that your business idea is viable and can bring profit, no investor will ever give you funds. That is just as important as having a target audience that is interested in your product. The demand of the market has to be already developed or at least developing. Make sure that you carefully research the market before talking to investors because they will be very interested in that aspect as this is a major fact in their decision making process.
- You should then have a very well-written business plan that can explain how and why your business idea will turn into a huge success. In order to achieve this, you have to do some preliminary research on the market, to establish the amount of capital you need in order to reach the set target of profit you have imposed to your company, to plan and to show how are you going to achieve the established goal. The business plan has to respect a specific pattern; it has to be very organized and attractive. Your business plan is the major marketing tool you can present to investors. So you have to make sure that it looks professional, it presents all the needed information and touches all the key aspects investors are interested in.
- Exercise in front of an audience before going into the pitch. Having your friends listen to your presentation will bring up the flaws in your plan or in your persuading technique. When going into the pitch, make sure to act professional, to provide as much key information as you can and to gain their trust. They will take just as much interest in your management skills as they will take in your business idea.
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