No matter if you are first time or a long-time business owner, getting the type of funding you need for your startup company may prove like a highly difficult task to accomplish. Whether we talk about getting a loan which you can use as starting capital for your firm, or getting some investors on board to believe in your idea, developing a new business proves to be more difficult than ever due to the economical crisis. Investors have stopped taking risks with just any idea, no matter how profitable it may seem, and banks will make you bring all of the paperwork you can think of before even considering offering you credit. However, this does not mean you have to completely loose your faith and give up on a perfectly good business plan. This article will provide you information on what exactly should be done to attract funding and transform your idea from a simple though into a functioning and profitable business.
Know what the investors want!
One of the first things you should know when it comes to identifying the right sources for finance is to get familiar with the desires of the investors. According to business planning specialists, when you reach out to another company or an individual person for a funding, the people on opposite part will be asking themselves the following three questions:
1. Who are the people behind the idea?
2. What does the idea actually imply?
3. How will we get our money back?
This basically means that you will have put together a great team of motivate people, of course, have a great idea, and last, but not least, be able to provide the investor with some sort of proof that at a specific point in time you will return the money.
Be a serious investment!
Like many people who have a startup, you are probably thinking that you need a serious investor which will respect everything mentioned in the contract. However, we advise you to keep in mind that the people who will be offering you money will have the same demands from you as you have from them. This means that you will have to work hard from start to draw the proper documents so that you build a solid business plan, which will catch the eye of the investors. Make sure you include all the information necessary regarding costs, equipment needed, explain in detail how exactly you will make profit, and attach a feasibility study to your file. Do your best to be as realistic as you can about your projections. Think about the worst case scenario and try raising money according to the numbers associated with that, as such a mentality might actually save you from bankruptcy.
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