Business model preparation
Preparing a business model could be challenging, studies conducted by IBM says that 90% of the CEO’s surveyed stated that they planned to innovate the business model over the next three years.
Either expanding a small business with a loan or going for a round of venture capital, make sure your business model is scalable.
Determining the size of the funds required
Over funding or under funding will be a muddle in any fundraising, Excess money will always tempt you to do unwanted expansions, under funding your business will not provide sufficient money to grow.
Be clear about how much funds you need so that you plan your fundraising accordingly
Write a business plan so that you will understand how much you need for what.
Be specific and concrete because investors expect a clear budget and where the money is going.
Show that your company has a positive cash flow (if not now, in the medium term), so that investors can see that you have your unit economics right.
Finding the right funding option
Given the various types of funding available, you should take the time to evaluate which one works best for you and your business. Once this is done, you can proceed to selecting the right investor.
Approaching the Right investor
When you have solid proof for your business plan that really works out, the next challenge is to find the right kind of investor for your fundraising.
Everybody with money is not the right person to invest in you, as many people will invest but then may end up detrimental for your business growth as their vision does not align with yours.
Whoever aligns with your business goals, who has an interest in your industry and who can assist your growth, will be the idea investor.
Prepare a Pitch deck
First impressions are the best impressions, so what is a pitch deck first of all?
A pitch deck is a presentation that is used to pitch your idea or company to any number of audiences, typically investors.
Present about your business ideas in a realistic but exciting way. This is your chance to impress the investors and request for a meeting to take the conversation forward. Ensure you are optimistic about your business but at the same time not overly optimistic – as excessive optimism can be a dampener when it comes to fund raising.