10 Tips on How to Raise Funding for Your Business

We can all agree that starting a business from scratch is not as easy as it may seem. After the initial euphoria where you are proud your baby project took shape and it’s ready to roll into the world and grow, you realize there’s a catch. Your big idea must be fundable in order to grow wings and attract investors.

That’s why today we’ll discuss top 10 tips that, when applied, will show investors that your business is fundable and has the capability to produce amazing results.

#1: Put together a comprehensive business plan

No investor will consider funding your business without a well-documented business plan. He or she needs to understand what you want to achieve through your project and how this can be beneficial for both of you.

In order to create a good business plan, make sure you try to offer explanations to any questions that may come from a possible partner. Include examples and put everything together in a way it’s easy to follow.

#2: Set realistic goals and milestones

Objectives must be well-defined and achievable. If you project earning your first million dollars in profits but you didn’t even achieve the first milestone, an investor won’t see your project as feasible. Write down your milestones and highlight the ones you already completed. This will give your business traction and credibility in front of a potential investor.

#3: Build a powerful team

Businesses usually start with one or two funding persons. However, if you expect to grow, make sure to attract capable people that will help you along the way. A great team is an important factor in your credibility ranking.

#4: Don’t forget about financial forecasting

Besides the business plan we discussed earlier, you should also have financial reports and forecasts. An investor may want to see if you understand where your project is going. Financial reporting is also a great way of learning about your businesses’ commercial performance and future.

#5: Make the Right Connections

If you can convince experts in the field or executives with experience to join you, this shows potential. It’s also recommended to find a way to connect with possible big customers and other leaders in the area.

#6: Business and personal finances should be separate

Entrepreneurs don’t really have a personal life (at least in the beginning) but you have to find a way to keep the finances separate. There are certain indicators that can be thrown off if you use the same account for both business and personal expenses.

#7: Try to find Real Customers

If investors are asking for traction, this is the best step you can make. By selling your product or service to a bunch of real customers you’ll also be getting some feedback which is extremely important. Also, another important aspect of this step is the real revenue. This shows your business has a potential market and will find more customers with more money.

#8: Show you believe in your Dream

This can be done by investing your personal funds first and then asking for funders to invest theirs. If you don’t risk your own funds for your dream project, you can’t expect others to do so. Show you believe your business will take off by investing personal funds in a progressive matter.

#9: Intellectual property

Patents, trademarks, and even domains look good when you start looking for investors. It shows your business is making progress and you are serious about achieving your goals.

#10: Understand the Role of Funding Platforms

If you feel your business or project is not yet ready to meet investors’ requirements, there is always an alternative solution. Today, there are many platforms that non-banking loans for businesses, helping them raise funding and grow their business. The procedures are simple and you don’t have to jump through the same hoops as when looking for an investor.

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