Nearly every business needs to start by raising business capital. First, most entrepreneurs pull from their own accounts or borrow from friends and family, but often in order to scale beyond a certain point it is necessary to talk to investors. Many businesses fail because they don’t know how to get past this crucial step. Here are some tips from the experts on how to raise funds.
4 Tips for Raising Business Capital
- Build a newsletter audience: Even if you aren’t ready to make a pitch yet, creating an investor newsletter can be a great first step. This can help you get your company’s financial information in front of investors, build creditability and even create relationships with investors. This can go a long way, because when it finally comes time to talk to investors, many will already know about your business.
- Master your pitch or find someone who can: Perhaps it should go without saying that you will need to practice your investor pitch until it is perfect. If you don’t think you have any natural gifts as a presenter, you may want to find someone who has those skills. Look for a presenter or advisor who has successfully secured funding in the past. The value of that experience is more than just a good track record. That kind of history is a good sign that this person will also have key relationship with investors.
- Attend capital events: Going to capital events is a great way to build relationships, make your pitch to investors and hone your presentation skills. Make sure to research specific events before attending, so that you know what to expect, who will attend and how you will appeal to your audience.
- Assemble an advisory board: Create a dedicated board of six trusted advisors with the express purpose of raising money. Explain your goals to them and let them know exactly how each of them can contribute to helping you raise capital.
Of course, raising capital for your business is fundamentally about demonstrating a viable business model and results that signify an opportunity for investors. The path to success is long. It is more about your business than your pitch. Knowing a few tips, however, will make the process of getting funded go more smoothly once your business is ready for the next step.