Every business needs capital to get started. Most people believe that businesses need a lot of money from the very beginning. Well, although this could be true in some cases, there are many different types of businesses out there that are able to get started with a very small amount of money.
It is always important to remember that what you need most is to believe in your business, your product and your vision for the future. Because if you believe in those things then so will other people. And of course, we are not just talking about your potential clients and customers. We are talking about the people that could fund your business.
Fundraising is a rather common practice for businesses nowadays. There are many different ways for a business to earn the budget it needs to get started and fundraising is certainly one of those ways. There are different types of fundraising and depending on your business, at least one of those types will be good enough for you.
However, there are a few things that you will need to know before you actually start fundraising for your business.
- The Product/Service
You are selling something. Something that you believe will make you profit. What is that something? It is important for you to know your product or service. If you want people to love your product then you need to be able to show them why. By perfectly knowing your products and services you will successfully build it up to the people that could be your potential investors.
Start by creating a presentation. That will help you keep track of important features that will help attract your investors. Be passionate when presenting your business. So your investors why your product is the best.
- Know the competition
When presenting your business and your product, it is not just about being able to show people why they should invest in you. Your product might be great and your business might be very promising but what is the guarantee you will give to your investors regarding the market and the competition?
Every market has competition and you need to know yours. By studying your competition you can learn practices and succeed in becoming a strong stakeholder on your field. You will also be able to go through the necessary action to maintain your business intact, in case the competition becomes to difficult to deal with.
- Who are your fundraisers?
There are many people out there that are willing to invest their money to small businesses but which of those investors are the best options for your business? This is a very important question. You do not want to waste time trying to convince people that will not believe in your product and will not give you the funding you need.
- Know your strongest points
KPI’s or key performance indicators are essential for every business. They are what defines the efficiency of your business through specific products and services. They are your data and it is that data that your potential investors are going to want to see. You need that data to be valid. Most importantly you need to know how to read and present that data.
Both you and your investors need to know about your strongest products and services. You can focus your activities on these products and maximize your profit thus convincing even more investors to become part of your business.
- Know how to advertise your business
This early in your business, you will not have the budget to hire advertising services, nor is it necessary to do something like that. You are more than capable of presenting your business. Moreover, potential investors will want to talk to you, not some advertiser. You are the one pitching yourself and your business. You need to know how to advertise your business in such a way that you will convince people to give you their money.
Fundraising is no different than crowdfunding. You are asking for investors. You need to show them that your business is worth the investment.
There are many more things that you will need to do to start your own business. If this is your first time starting a business we can understand why all of these might seem like Herculean task.
You can always educate yourselves on businesses and validate your knowledge by applying it to your business. The training platform provided through the YOU-ME project is certainly a great way for you to start simulating how it will be like to own a business and of course, test your talent as a business owner.
If you want to build a strong business you need to devote time to do research and you need to allow yourselves time to get trained and learn the most important values of being a business owner.