Quick and Easy Guide To Raising Capital for Your Small Business
One of the top reasons businesses fail is a lack of capital. According to the NSBA report, 35% of small businesses said that lack of capital hinders their ability to grow or expand their business, and 19% said they had to reduce the number of employees due to tight credit. But with the help of a solid fundraising strategy, you can access and raise capital and even other much-needed resources to fund your short, medium, or long-term business needs.
Many small business owner’s also say that the scariest or hardest part of fundraising is not knowing when and how to go about getting the capital to execute their vision. But don’t worry, we have a lifeline to help rescue you, in this article we have created a quick and easy step-by-step guide to help develop your fundraising strategy.
STEP 1 – ASSESS YOUR CURRENT SITUATION AND DEVELOP YOUR FUNDRAISING GOALS
Before even stressing out the rest of the fundraising activity, sit down, get a piece of paper and assess your current situation and develop your fundraising goals, this the WHY you are even doing this activity.
Ask yourself:
- Why do I need capital? What am I going to use the money for? What will it help me do?
- How much do I need?
- When do I need it?
To seek help to ensure your existing financials, financial projections, and financial slides in your fundraising deck are suitable for investors or lenders and ready for due diligence, click here now.
STEP 2 – DETERMINE YOUR CAPITAL SOURCE OPTIONS
Now that you know your current situation and goals, you’re ready to determine where you’ll get the capital you desire.
Some key options include:
- Friends & Family
- Pitch Competitions, Accelerators & Incubators
- Grants
- Loans
- Angel Investors
- Crowdfunding
- Venture Capitalist
- Bootstrapping
Determine the right capital source option that is fit for you! Once done, you are officially ready for preparation mode.
STEP 3 – FUNDRAISING K.I.S.S [Keep It Simple Strategy]
Now that you have assessed your current situation, then developed your fundraising goals, and determined your ideal capital source option(s), it is time to execute your fundraising strategy.
PRO TIP: Make sure your values are aligned with your investors. Be honest about who you are, what you care about, and what you are building.
A core part of your fundraising strategy is spending time on yourself (which isn’t financial at all, but SUPER CRITICAL!).
YOU NEED TO BE IN IT TO WIN IT!
And speaking of winning, to boost your success rate of raising the capital you need, have a financial plan that is investor-ready! If you don’t have it yet, start here with Your Profit Playbook™.
CONCLUSION
Raising capital for a small business can be challenging, especially when funds are limited. However, there are several strategies you can use to get the financing you need to launch or grow your business. To raise capital for your small business and nail the fundraising process, assess the current situation of your business, then develop your fundraising goals. Once done, determine your capital source options, then crush the fundraising process by following our K.I.S.S. strategy!
Fundraising and raising capital is quite tedious for most business owners. If you want to feel confident that you’re investor ready and have support to ensure your existing financials, financial projections, and financial slides are suitable for investors or lenders and properly prepared for due diligence, then you don’t want to miss this LIMITED -TIME offer! [CLICK HERE]
BONUS: Download this checklist to help boost your chances of success along your fundraising journey by securing the capital you need to execute on the vision you have for your small business. Prepare to win!
