When you want to opt for financing for your business, you should look for the best preparation and quality in this regard, since doing it in the wrong way will lead to a negative response or poor handling when looking for this event.
However, with a good planning and execution of this, the best results will be received, it is necessary to take into account some necessary points to be prepared for any eventuality that this process may give
Keep this in mind:
- Before looking for financing. Look for clients. If you have not yet validated your business model, you will end up making inefficient use of the resources you get.
- Make a financial plan. Before choosing the way in which you are going to finance your new business, it´s advisable to develop a financial plan that answers questions such as: How much money do you need? What are you going to invest that money in? What is your customer acquisition cost? What is the customer life cycle? What is the profitability of the business? The clearer you have the financial and economic aspects of your business, the more effective your search for financing will be.
- Evaluate the different financing alternatives. It´s important that you know the different sources of business financing and analyze which is the best for you according to the amount of money you need, the stage in which your venture is located, cost of capital and the business model you are running.
- Avoid searching 100% of resources through external sources. It´s always recommended that the entrepreneur himself invest his resources in his venture, thus his commitment will be greater. Also, investors aren´t fond of someone not considering investing in their own project.
- Don´t dedicate yourself to live from calls. The calls are a great support in the early stages of development of your company, but if you dedicate yourself only to preparing yourself to win contests and calls, you´ll end up moving away from the possibility of building a sustainable and scalable company that brings real value to the market.