Expert Tips for Getting Funding for Your Startup Easily

Experts and experienced entrepreneurs believe that as a new startup owner or founder, you would be encountering countless obstacles right from coming up with a proper business plan to creating a team to acquiring clients and so on. However, the greatest challenge to a startup is raising the capital. Finding funds for your business could seem to be an overwhelming task but if done right you could easily sail through smoothly.

As per https://www.statista.com, “New startups pop up every day all around the world, each of them hoping to get acquired by a larger company or make it big in their own right. However, for every wildly successful startup, there are thousands which fall into obscurity, which is why startups valued at a billion dollars or more are facetiously referred to as “unicorns”, a reference to their elusiveness. As of June 2018, the most valuable startup worldwide was the ride-sharing app Uber, which was valued at 68 billion U.S. dollars.”

In this context, we know that often the success of startup businesses is dependent on investments. However, most individuals do not have huge sums of spare money with which to initiate a new venture. They must, instead, look for funding from various sources to raise the required capital for their business. Whether they are trying to pitch venture capital investors, angel investors, or even friends and family, getting the right people to consider investing in your business could prove to be a huge challenge.

Considering the fact that getting funds could make or break a startup business, it is crucial to be equipped with the right knowledge and information regarding the art of pitching. Here are some expert startup fund sourcing tips that may help you forge ahead in the right direction.

Be Sure of What You Are Actually Looking For

We know that as startup founders or owners, money is probably the first thing you are thinking about. It is, therefore, critical to effectively manage your financials. However, before taking the final plunge, you need to check and recheck exactly what you want. Are you sure that you need funding for your startup at this stage itself or are you willing to wait? Are you thinking of this startup seriously and as a long-term project? If you are having any second thoughts, it would be a great mistake to seek funding. You must constantly ask yourself whether you require more money for taking the next step. You must realize that raising capital is not just a way of funding your business. You need to understand that it is actually, committing to investors, clients, and even employees. You need to be 100 percent sure that you are ready for this business growth.

Look For Advisers, Not Just Investors

In reality, it pays to keep in mind that there are several indirect ways of raising funds than the direct ones. We know that there exists a broad spectrum of seed investors, As such, you must consider fundraising not just in terms of only pure cash but also, in terms of value and relationships.

Keeping this thought in your mind, it is best to look for advisers instead of just investors. There are two primary reasons for doing this. Firstly, when you are choosing an investor for your startup he would definitely be weighing in on all your business decisions. By taking a decision to execute this individual’s advice before his investment would imply that you are actually, testing out the relationship and trying to understand what he is bringing to your business as your business partner.

“When it comes to investors, there’s a lot to choose from. It can get a bit overwhelming for startups that are totally new to the business game, but choosing the right option will not only better your chances of attracting the best investor for your operation, but may even help you avoid issues in the future” as per https://www.huffingtonpost.com. It is best to opt for reputed and reliable lending partners such as Liberty Lending U.S.A.

Showcase Your Business Model

You need to keep in mind that real startup founders are not supposed to pitch dreams and ideas. They must consider pitching proven business models. Moreover, it would be better if you show a business model that has gained both traction and revenue. You need to be realistic and understand that people would invest in your business only if they are sure of getting the returns.  You need to demonstrate a clear and precise path to profitability and you must focus on assured returns.

Know All about Your Audience

You need to know about whom you are going to impress while pitching, well ahead of the scheduled meeting. You need to do thorough research. Suppose your company is dealing with education, for instance, your research reveals that your investor-to-be has kids, it is best to tailor your pitch accordingly to appeal precisely to his concerns as a parent. You just need to make things relevant to your investor’s personal experiences. Only then, you could rest assured of securing what you are looking for, funds for your business. According to a seasoned investor, he is used to hearing thousands of pitches throughout the year but the most successful pitches are the ones that he finds appealing to him personally.

Conclusion: It is All about Meaningful Networking

It is true that investors are pretty used to pitches all the time but obviously, that does not at all mean that they would like to include someone on LinkedIn who would at once start pitching. Strong, robust, and organic relationships are formed more often than not, through meaningful networking. In the case of many startups, that was precisely how relationships were cemented. When seeking investors for your startup, remember it is not always about how much money could be made. It is definitely, more about the shared goals and vision. When you share much more than just money, it helps in making your startup success all the more happier and sweeter and practically speaking, it implies assured second or even third round of investing in your startup.

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