Process to Raise Funds For Your Startup
Welcome and congratulations for setting up your business. Let us take your business to the yet another new level. Many of us will be wondering about raising funds for startup.
Startup Fund-raising seems difficult with less probability. However, there is a great possibility too. So in this blog we will see the best possible steps of raising funds for your business.
Here is the step-by-step procedure of business fundraising:
-Be Clear With Your Requirements
-Count on to your Self Fundraising Options
-Prepare a Pitch Deck
-Identify and Start Pitching Investor to Raise Funds for Your Startup
Be Clear With Your Fund Requirements
First of all, start considering your funding requirements. Identify and calculate how much funds are required in your business. Stay much focused and considerable on the key resulting areas.
-Try to avoid unnecessary expenses as far as possible
-Use different alternatives for heavy expenses. Choose rent options instead of buying or purchasing heavy items at beginning.
-Make estimate of bulk enquiries to save more on raw materials cost and expenses.
-Outsource products and services instead of getting engaged in these operations. You can outsource the materials densely available at fare rates.
-Avoid starting off from the beginning to save clicks of dollars. You will end up engaging more manpower and unnecessary expenses. Outsourcing will help you in time and energy savings.
And moreover, you will be less concentrated on low priority areas. You will then be able to focus on on business key focused areas.
Count On To Your Self Fundraising Options
As you have already calculated your funding requirements, let’s now check out self-funding options.
-Mention and calculate how much funds you can accumulate from your side. Figure out different internal sources you can use to raise funds.
Sources of Internal Funding:
-Use your savings or sale off things you don’t need
-Slash down your extra expenses on random items and collect it
-Collect funds from your closer relations like father, brother, etc.
-Use your circles to raise funds in exchange of equities
Prepare a Pitch Deck
Start preparing a pitch deck to raise the remaining funds for your business.
-Focus on the problems your business is addressing. Always catch bigger problems.
-Mention what solutions you are bringing to address the problems?
-Identify the total market segment: How big the market is?
-Focus on the future projections in terms of revenue and business growth
-Identify your top competitors in the target market segment
-Feature the Unique Selling Proposition of your business
-Introduce your high performing team in presentation
-Funding Requirements: How much funds you are raising? How much equity % you are offering?
Identify and start pitching investors to raise funds for your startup
So now is the time to identify various angel investors to pitch them for fundraising.
-There are several angel investors groups in USA and India. Start identifying them and apply for pitching your funding proposal.
-You can also use Angel.co and Crunchbase website to find the list of prominent Angel Investors within your city, state or country.
-Do a web research and discover top angel investors networks or groups. Check their funding history, business relations, and primary areas/interest for funding.
-Every Angel Investor gives priority to his primary area of interest before anything else. So be sure you fall in this category. Discover closer to identify such information.
Add on: Be part of top Incubation Centres
Incubation Centres are the mega platforms to engage with investors, entrepreneurs and service providers.
Start registering on top incubation centres. The expert authorities will help you in identifying and pitching best fit investors for your goals.
Research about the incubation centres before applying:
-Check out the number of start-ups they have incubated
-Go through the reviews and ratings of Incubation Centres
-See the mentors and board members profiles and experiences
-Know how these Incubation Centres work, what offers and services they provide for business like yours.
Quickies: Please do not skip checking out the ground realities. Many false incubation centres keep cheating and entertaining aspiring minds. Do not get misguided by such centres. You don’t need scammer’s stamp on how to run your own business.
So it was all about raising funds for your business. Go with the procedures and start raising funds for your business.
A management enthusiast, an avid reader and a traveller. The world is a beautiful place so I keep travelling, spending time between nature, on the riverside and gaining new experiences.