Funding 101 – The Funding Process (How Fundraising Works)
We wish we could say that Fundraising was easy but unfortunately that wouldn’t be the truth. Every year, 20 million Americans are involved in starting or growing a young business and many of these people are looking for some form of funding. Like everything in life – there is a roadmap and a process. The reality is that fundraising isn’t easy and investors can seem like a fickle bunch…each with a different perspective on what kind of venture they will engage in and what industry segment they focus on. With BizDeLite, you now have a conduit that can provide you a platform for communication, advocacy, and more importantly, the funding you require to make your business dream a reality.
Since there are always more people looking for money then there are investors looking to fund companies – it is important to adhere to the fundamentals. BizDeLite makes this an easier proposition by having investors predefined by criteria and classifications.
Our goal is to help you through this process so you have a greater chance at success and provide you with access to angel investors and traditional investment companies. Now is the time to understand what it will take to prepare your business plan so you can outline your strategies going forward.
Before looking for funding you should have incorporated your company, applied for a Federal Tax ID, figured out your company logo, even set-up a website & some collateral. The key meaning by doing these tasks is that this is a real company and not just an idea.
Remember it is always easier to find funding after you have gained some traction in a particular market or, better yet, started driving revenue. That means that it is important to build prototypes, find customers, do market research, etc. Remember, the art of getting investors to invest in your venture is that you have to convince them that you are sitting on a “winner” and it would be in their best interest to come for the ride. That is what finding capital is all about.
Targeting the specific investors that are looking for deals in your particular industry is another task that has to be well-thought out. This could be equated to a rifle shot instead of a shotgun blast. Building this list will enable you to find investors that understand your business idea.
The preparation of an executive summary on your business is a prerequisite to submit to investors. This is your business idea in a snapshot and quickly conveys the main points of the how, what, and why of your business venture.
BizDeLite has a built-in Executive Summary template that will help you fill in the necessary information to make sure that you a presenting your business in the right context. This will allow you to facilitate your communications with investors and other funding sources. Just make sure that you have completed a full business plan to augment any Executive Summary that you might be submitting.