As you probably know by now, raising capital is no easy task. It can test a business to its limit, as depending on which route you go down, the level of scrutiny your business will come under will increase. Despite this, there are a range of things you can do to give yourself the best possible chance. Here are our 12 tips.
Decide on the size of your business
Whether you’re building a business to make big bucks or a smaller company that will provide financial security, you need to be clear about what you’re looking to achieve. The two are very different paths and you need to choose one.
Location, location, location
So you’ve decided whether you’re looking to create a small, local business or take on the world. If it’s the latter you may well need to move. Raising money for a high impact business cannot be done from just anywhere.
It needn’t matter if you have little to no experience as an entrepreneur. To get into the entrepreneur game and make a big impact you should immerse yourself in the world of successful entrepreneurs. Attend conferences, network and ask questions – all of this will go to help you and your communication skills.
The team is all important
One of the most important things you can work on is your team. Having a team that is capable and invested in what your company is about can make a world of difference. It’s when they come under pressure that you’ll be able to see how functional they really are.
Choose your mentor wisely
While you will undoubtedly pick up some great advice from those who run billion-dollar corporations, it may not be particularly relevant to your business. Finding someone who has been successful in your area is certainly beneficial.
Work hard, play hard
Working hard and playing hard should go hand in hand. It’s okay to have fun with your business – sometimes that’s what provides the best ideas. Experiment with your business and don’t be afraid to try something new, and enjoy your time off when you can!
Not every idea you have is a winner – that is the same for everyone. If it doesn’t work, look at how you can change it. Alternatively, look at other ideas. Every entrepreneur fails at some point and this can often provide the greatest lessons.
Know your stuff
Take the time to learn the various terminologies – everything from how venture deals work to how you should value your business. By improving your understanding of what you’re worth, you have a better chance of attaining deals in the future.
Don’t do cold calling
It may seem like showing initiative, but requesting funds from every single investor is something many people already waste time on. A lot of business plans go unread. Try to be selective and try to get a relevant referral.
Know your space
This one is all about having situational awareness. It’s important that you know who your competitors are and what they’re doing which is easy enough thanks to the internet.
Investing more than money
Having someone write out a check is certainly great news. Regardless, there are a range of other investment options available – many of which offer more than money. that offer much more than money. This can include mentorship, classes and services.
Don’t feel sorry for yourself
Again, failure does happen. What’s important is how you react when you do have a setback. Those who take the time to change things up and further improve tend to be successful.