Getting funding for your startup is hard! You’ll need more than a great idea for investors to sit up and take notice. Follow these six tips for finding and securing business funding, and you’ll be launching the next chapter of your startup’s history in no time.
You believe 110% in your company, and so does your team. Every victory is met with cheers and every setback is treated as a learning experience to help you grow. You know the sky is the limit, and nothing is going to stop you from getting there. However, investors are a little more skeptical. You’re going to need a grounded, fact-based business plan and valuation assessment in order to convince them that you know what you’re doing and are going to make millions for them like you promised. Very few startups are a smash hit right out of the gate, and it may take years before true return on investment can be realized. Be upfront about your company’s financial situation and prospects for success. Ask your mentors and peers for advice and revise, revise, revise before showing your business plan to investors.
Don’t Discount Your Team
You didn’t get to this point in your startup’s journey alone, and you won’t secure investment alone either. Potential investors aren’t just interested in what you bring to the table, they are buying the whole package. Make sure you show off each and every member of your leadership, giving their talents the chance to shine. Your team should be a well-oiled machine, ready to respond to questions about past successes and missteps fully and articulately. Again, honesty is the best policy, as is coordination. Even if your startup has had some struggles in its early stages, a united front from your team will help dispel any doubts investors might feel.
Make the Ask!
The hardest part about asking for help getting funding for your business is, well, asking! Many banks will help you put together the business plan and other important documentation in a way that will really appeal to investors. Look to the Small Business Administration (SBA) or local credit unions for this. Honesty is (once again) the name of the game. Ask for the help you need, be truthful and transparent about your past experiences and the capabilities of your team, and confidently seek mentors who can lend you a hand. Your boldness will be rewarded.
Consider Other Types of Financing
You might be tempted to shy away from angel investors or venture capital funds, who often ask for equity in your business in exchange for financial support. Especially in the early stages, you will likely be very reluctant to give up ownership in your business – but it might pay off in the long run. These types of investments can be beneficial, even if just in terms of growing your professional network. You’ll be able to leverage these contacts for years to come.
Refine Your Marketing Strategy
This is the time to really nail down who your customers are and how you’re going to entice them to purchase your product. Your investors want to see that you have a plan to generate revenue and carve out your sector of the marketplace. Work with your management team to develop a strategy for scaling and growing your business now. Demonstrate you know your customers and what makes them tick, and articulate how you’re going to be able to capitalize on that. Investors will be impressed by your foresight and attention to detail.
Take Care of Your Insurance Needs
In order to obtain a loan, many banks will require that you get term life insurance. This type of insurance covers a set period of time, or “term.” Work with financial and tax advisors to choose the best option available to you and then close the deal. You’re now one step closer to securing the loans you need to propel your business forward.
Let Us Help You Succeed
Finding and securing financing for your company is crucial for growing your business – you can only bootstrap for so long. These six tips will help you get the funding you need to make your startup dreams a reality. You’ll also want to make sure you’re connecting with the right partners for your business – including the right credit card partner. We pride ourselves on our top-notch customer service, transparent pricing structure, and easy installation with a human touch. Give us a call at 1-855-360-0360 or drop us a line on our website and we’ll earn your business.
PS – Credit card fraud is serious business! Here’s how to protect your business.
PPS – Reading your monthly merchant account statement can be tough, but we’ve got you covered.