4 Fundraising Tips For Your Small Business

You should know how much fundraising capital you will need to raise.

Transcript

1. SMALL BUSINESS 4 Fundraising Tips For Your Jake Croman
2. FIRST You should know how much fundraising capital you will need to raise. A thorough business plan allows investors to understand that you’ve thoughtfully identified the risks and critically researched the steps required to break even and generate revenue.
3. Create a business strategy to: - Assess markets and competitors - Gain insight on capital you need - Avoid costly mistakes
4. BEST ADVICE BEST AVOID Plan a clear budget and ensure the ability for deficit spending. Potential investors critique entrepreneurs on the effectiveness and completeness of their budgets and business plans. Don’t underestimate your expenses. When setting a fundraising goal, keep in mind that it normally takes more than double the time to achieve the conservative estimate of your revenue goals that are outlined in your financial model.
5. 2. KNOW YOUR COMPANY’S VALUATION Part of knowing how to start your business is to first know how to correctly assess your company’s valuation. Your company’s value is essential for determining the cost of new capital while you seek equity additions to your current capital plan.
6. BEST ADVICE BEST AVOID Make sure to assess the correct type of value for your small business. You can lower your price if you’re a new entrepreneur or haven’t yet released your product. Many mistakes can be made when valuing your business. Avoid choosing the wrong type of value and assessing value via net profits over cash flow.
7. 3. CREATE AN EFFECTIVE FUNDRAISING TEAM Fundraising strategy requires an expert team. Recruit team members with standout skills and utilize them in specific roles.
8. BEST ADVICE BEST AVOID Recruit team members who already have investor networks. Hire people who are great at building relationships. Don’t hire people who have no experience pursuing outreach and setting up meetings with investors. Infrequent meetings with investors may drag out the decision process for them and distract you from creating a quality product.
9. Attracting target fundraising audiences is key to successful investments. It’s important to match your product’s target audience with similar investors. Determine what your desired audience(s) want from your product. 4. DETERMINE YOUR FUNDRAISIN G AUDIENCE
10. BEST ADVICE BEST AVOID Know your audience. When engaging with investors, you don’t have to simply ask donors to write you a check. Beating around the bush; Asking for insufficient amounts or unreasonably high funding; Focus on style and substance; Don’t ignore individual donors.
11. Like most new entrepreneurs, there will be hurdles to face as you learn the ropes. However, pursuing your passion as a career can be worth it in the end. The right amount of training, focus, and preparation can help you effectively raise the capital needed for your business venture while building sustainable, long-lasting relationships.
12. THANK YOU! w w w . J a k e C r o m a n . c o m