As a newbie entrepreneur who is gearing up for introducing his or her fresh business idea in the market, unless you are bootstrapping or investing your own private fortune, you will likely have to put great efforts in acquiring enough capital to launch your project. For most startup business owners, the process of fundraising is undoubtedly tough and time-consuming; nevertheless, it is crucial for the potential and healthy life of their business venture. In case you are new to the market and debuting in the procedure of raising funds for your business, the experience can be even worse, as you are not supposed to be familiar with the hooks and nooks of fundraising.
As mentioned above, in case you do not own any sort of private fortune to fuel the finance of your business, you will have to seek other forms of investment such as venture capital or angel investing. When it comes to encountering a no from a crowdfunder, friend or an angel investor, it can be really disheartening for a new entrepreneur. However, there is no point is letting such a situation to get the best of you. In fact, according to forbes.com/ startups in the U.S. collected more than $67 billion in venture capital funding last year.
To help you out with securing funds for your business, here are some of the innovative steps that will get your proposition reconsidered and boost your chances of receiving funds for your business.
While you proceed with the fundraising procedure, it is crucial to be mindful of your behavior and actions and try to keep in as professional as possible. There is no point in feeling disrespected following up with a potential investor when he or she has provided you with a no before. However, it is critical to come up with a new idea or generally an innovative pitch where you are able to offer new information that you missed earlier, otherwise, you will rule out any possibility of the investor reconsidering your pitch. On the absolute contrary, you should politely thank the prospective investor to spare some time from their schedule to listen to what you had to say and follow up after few weeks after you have gained more details and improved your business model. Such modifications and professional attitude will boost your chances of securing the funding for your startup business.
Capital Raising Is a Long-term Goal
Perhaps the hardest thing to do while launching your startup business is to keep on waiting to see your business idea and plan conquering the existing market and bringing the revenue you expected. There is no shortcut to overnight success especially when it comes to having your business funded, as you have to understand that financing your business is a time-taking process. Finding the perfect balance between your passion of launching your business as soon as possible and the patience to wait for the fundraising is extremely necessary. Even when you manage to finally convince an investor to fund your startup business, closing the deal could take a lot of time. Capital raising is a long process and you should not lose your peace due to some short-term obstacles.
A No Could Be Path to Acceptance
It goes without saying that the greatest of ideas take some time to get accepted in the masses. You have to understand that no matter how creative and innovative your business idea is, it cannot be an explosive hit instantly. The road to acceptance sometimes gets littered with rejection, failures, and other forms of obstacles. Even the successful entrepreneurs who open the story of their business success recount the numerous times they felt rejected and faced the different hurdles during the course of their entrepreneurial careers. It is necessary to take solace from such stories that there are successful personalities who have accomplished things after encountering initial rejection.
Consider All the Options
Another thing to keep in mind while raising funds for your business is that there is no right or wrong way to secure loans for kick-starting your business. When it comes to pursuing funding for your startup, ensure that you are contemplating all the available options. This will help you in changing your fundraising strategies when you are finding yourself in a channel that is offering more obstacles than the number of opportunities. There are several other ways of borrowing money other than traditional money lending options. For a better understanding and knowledge of various lending channels, you can connect with authentic websites like https://www.libertylending.com/. Picking the right channel or group of channels for seeking funding can boost your chances of getting a yes.
Evaluate Your Business Model
Instead of feeling disheartened due to rejections, use the situation as a learning opportunity. In other words, find out where you could have been better and went wrong while pitching in front of the investors. This call for an analysis and reviewing of your business model or else you can directly ask the investor politely about the loopholes they find in your business concept. Often the research does not sit well with the assumptions the way you thought it will work out. Addressing such issues can transform your overall business model and make it more attractive and appealing to the investors which can help in changing their minds.
Work Out On Your Pitching
Finally, it is crucial to improving pitching as it forms a consolidated version of your business model, making it extremely important to consider the important pointers of your business. Your pitching should be strong enough to captivate the attention of the investors and drive them to the vision that you are trying to help them see. While you speak for a minute or share the story of your business concept, make sure that you are able to showcase why your business model can be a perfect business investment.
If you are raising capital for your startup and already faced a no then be glad of the fact that you have already passed the first step of the journey towards financing your startup. Adhere to the aforementioned steps and change the “no” to a yes in no time.
Daniel Ng is a freelance writer who has been writing for various blogs. He has previously covered an extensive range of topics in her posts, including business debt consolidation, Finance, E-commerce and start-ups.