Everyone is looking for capital these days, but how can you get it?
There are a few factors that will really help you look favorable to investors, so let's take a look at what you can do.
First, you need a plan. What are you planning on doing with your business? Where will the capital be used? When do you think you will be able to pay them back? And what are you looking for? You can't go to investors without some type of plan on what you need and how you will use it. Asking for $1,000,000 and saying you don't know anything else will not get you anywhere.
Next, you need to show them that you have a plan that matches actual data. If you are just starting out and don't have history, you will want a solid business plan. It must also be accurate. You should not say you are going to do $5,000,000 in the first year if that is not how your area is. Do a little research. See what others in your area are doing, see what your estimated income and expenses should be. If you over embellish your numbers, then your investor will be able to tell. They will have done their research, you do yours.
Last, you will want accurate and clean financial records. If you have history for your business, you will want to show past financial reports, along with your budgeted reports for the rest of the year into 5 years. If you are just starting out, then you will want to show your 5 year business plan. This is why it will be important to have someone that can help you with all of this. Especially someone that has raised capital before. You will then want to show that you know how you're going to manage this capital in the future. Investors want to know that they are spending their money wisely.
If you have any questions on raising capital, we are here for you! Let's get started today to get your money....