Increasing Your Chances of Receiving Business Funding
November 13, 2019 | Mason Roberts
Why is it so difficult to receive funding?
No matter how bad you wish it, money does not grow on trees. It is coming out of someone’s pocket, somewhere down the line. When looking to borrow funding from someone, whether it be a personal investor or a large business, there will be a lot that goes into it. Any smart business person will ask you what may seem like thousands of questions before handing over a large sum of cash. This is also because building a successful business that will lead to profit is hard. More startup businesses fail rather than thrive, and investors are well aware of this fact. If you want to be one of the few that stand out amongst your competitors, you must have all the necessary answers. Not only that, but they must be well thought out and possible to execute. The only way to receive help from outside sources is to make it known that, if given the chance, your business will stand the test of time. You need to make everyone believe not only in your business but in you as well.
To be the best entrepreneur, you should have all your affairs in order. Once this is done, you truly open many doors of financial opportunity. If this seems like something you may be lacking, it is time to fix that. Here are some tips in increasing your chances of receiving business funding:
1. Start ASAP
Starting as soon as possible is important for several reasons. First of all, receiving the funding you are desperately searching for can take much longer than anticipated. There are factors upon factors that go into such a thing, meaning you should not waste any time. Also, there are so many stories of the business owner who had their finances perfectly straight and waited too long to help themselves once things started to go south. At the start of your business, if you have a ton of money in your back pocket, that is great. A mistake many make is becoming extremely comfortable in the fact that this will always be the case. If things begin to go south, it is often overlooked because they assume it will get better, or their money will help them survive regardless of the outcome. Well, if you want your business to be successful for a very long time, you should acknowledge the fact that you may need to ask for financial help at one point or another. Tying into what was said before, receiving this funding can take a longer time than expected, so you should always be ready to make that call. Put your pride aside, and ask yourself if seeking help is what will make your business thrive in the long run.
2. Plan Out Your Money
Any business owner in outstanding financial standing has made a plan. This is just a fact of life. Finances are to be carefully handled, meaning that a plan is often made. Making a detailed plan can help you in exponential ways. This is not something you can do on a whim. When you go to the investors, or whoever you may be presenting your information too, you want to be ready for everything. A plan will show them where you are now, and where you would like to go in the future. It can help you in your journey to success, as you can follow each step diligently, as well as make you a strong candidate in receiving funds. All in all, a detail-oriented plan will help you in several different ways.
3. You Can Never Be Too Prepared
When trying to win investors over, know that they are looking for a smart, headstrong leader. They do not want a business owner who goes around making decisions on whims. They are looking for concrete plans and goals. So this is what you should be fighting to accomplish. Investors have so many business opportunities come through their doors daily. This is what they do, after all. They are here to help businesses get up and running. Some may take advantage of the fact that you need them, others may not. All in all, you want to stand out against countless others. Go to the investor’s office with your head held high, and show them why they should choose you to be their next investment opportunity.
4. Look to Your Credit History
Credit is something that has played a big factor in receiving funding since anyone can remember. Many decisions in life are based on a person's credit history. As times have gone on, it has taken a bit of a back seat because of the many other options created, but it is still very important. If you know that your credit history will not hold up to the stake of investors, you must do something to fix it. Make sure you are up on your payments. If you have not done everything you must do, now is the time. No matter how much you wish this did not play a factor, it does. Most investors will at least take a peek at your credit card history, if not more.