Getting together the funds for your start-up can be a tough ordeal, regardless of which funding cycle stage you’re currently in. Serious financial backing is paramount to the longevity of any business and is a key factor in development and expansion.
Fortunately, there are plenty of tips and hints you can adopt to help boost your efforts and improve your chances of bagging those all-important investors.
So regardless of whether you’re looking to target potential backers or simply want to know what’s best for your business, we’ve got all you need to know with our guide to start-up funding.
Recognising Your Funding Stage
You’ll need to begin by self-evaluating your company and determining which stage of the funding cycle you’re currently placed.
Are you earning profit from your services? Is your product far along in development? Knowing what position you’re in will help point you to the types of finances you should be seeking.
Showing an awareness of your funding cycle stage is essential, as those looking to back your business will want to see reflection and self-evaluation.
Demonstrate Your Motives for Funding
Each stage will have different requirements, so it’s crucial that you have a rigorous understanding of what’s required. The level of finance you request will need to be appropriate and realistically in line with your business targets.
Provide proof to potential investors and demonstrate a clear, specific need for investment. Let them know where their money is headed and how it’ll be meaningfully used. You’ll need a strong direction and a well-documented pitch, boasting a confident vision and personality.
Research Targeted Investors
Make sure to research, understand and recognise your potential backers.
To optimise your chances of receiving that crucial cash, you’ll need to be aware of the general behaviours and risk appetites of investors. They’ll differ at each stage, so ensure you’ve extensively clued up your start-up.
You’ll have a better understanding as to which approach to take, with a more grounded sense of how your business is perceived.
Finance needs, business milestones and current progress will all factor into the types of investors you’ll attract. Be conscious of who you’re appealing to, what you’re asking for and what’s most suitable. If you misjudge and ask for the wrong amount, it may damage your chances.
Pick the Right Time to Request
Before pitching, make note of each area in your business that needs expanding. Discover what you need to do to move into the next funding stage, and pick an appropriate time to ask for additional funding.
Timing your efforts successfully will mean you’ll reach each long-term goal in a maintainable manner, and won’t run up short at a later date. Sustainable growth is vital to keeping your start-up alive!
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