Tips for Fundraising
- Create a business plan and pitch deck: this should help to put your entire business on paper.
- This outlines the mission statement of your business, the size of the total market and the timeline for the business- in terms of launch product/service etc.
- This business plan or pitch deck is the first document that is given out to the investor, so it is useful to put your vision and your projections on paper well.
- Calculate how much money you will need: before you reach out to your investors and pitch your company to them, make a calculation of how much money you need from this round of fundraising to finance your short term and long term goals. Ensure these numbers are realistic and have been identified after doing market research.
- Research funding options: there may be a number of options open to you when raising money for your company.
- Funds can be raised in return of ownership of the company as outlined before and also by the way of loans. You may also have grants available in the industry your company works in. Your research should be able to tell you the best method of fundraising for your company.
- Create a repayment plan: when you raise funds. be it in terms of loans or in exchange of equity, it is assumed that at some point you would have to pay your investor back.
- If it is a loan, there would be a pre-existing timeframe by which you will need to pay back your investor.
- When equity is exchanged, you may need to pay back your investor in profits. It is good to be aware of what you need to pay.