Tips When Seeking Funding

When Seeking Funding
As a new entrepreneur, unless you’re dipping into your own private fortune, you’ll probably have to spend some time fund raising to collect enough capital to start your project.

For most founders, the process is difficult and time-consuming but necessary for the potential life of their business. If you haven’t been through the process before, the experience can be even more harrowing, since you won’t be familiar with the customs and conventions of fundraising.

Encountering a no from an angel investor, friend or even a possible crowdfunder can be disheartening. But don’t let it get the best of you.
Consider these steps to increase your chances of being reconsidered, improve your potential for obtaining financing in the future and in general relieve the stress of securing funding..
Related:  When Angel Investors Reject Your Plan

1. Be professional.
As you go through the fundraising process, keep your behavior and actions as professional as possible. It’s not disrespectful to follow up with a possible investor, even if he or she has said no to you before. But if you hound this person constantly with no new information, you might as well rule out any possibility that he or she might reconsider your pitch.
On the other hand, if you politely thank the potential investor for his or her time and follow up in a few weeks when you’ve gathered more information or adjusted the business model, you’ll have a much better chance of securing that funding.

2. Understand that raising capital is a long-term goal.
Anyone passionate about a business idea probably wants to start working on it as soon as possible and is excitedly anticipating the company’s launch. You won’t succeed in having your business funded overnight, though, unless you’re incredibly lucky. Fundraising is a long-term process and your project may remain at a standstill for longer than you would like.
Even after landing a commitment for funding, closing the deal can take months. Raising funds often ends up being a long process, so don’t let a short-term obstacle get in your way.

3. A no can be part of the road to yes.
Great business ideas may not be explosive hits immediately. The road to their acceptance can be littered with obstacles, failures and rejections.
Successful entrepreneurs might happily recount for you the numerous times they were rejected over the course of their careers. Take solace in the fact that many people who have accomplished things have done so only after an initial rejection.
Related:  Want Angel Investors? Here’s What You Need to Know Right Now. (Infographic).

4. Contemplate all the options.
There’s no right or wrong way to pursue funding. If one channel seems to be generating more obstacles than opportunities, change your strategy. When most people think of raising business capital, they think of angel investors or private lenders, but several other options exist.
You could apply for loans and grants through federal and local government programs for small businesses after checking the  Small Business Administration’s website. or pursue crowdfunding through sites like Kickstarter , or GoFundMe.
Choosing the right channel (or group of channels) to pursue funding could increase your chances of arriving at a yes.

5. Review the business model.
Use an initial rejection as a learning opportunity. Examine your business model for any major flaws or weaknesses or flat out ask the rejecter why he or she passed on your project.
Perhaps your research doesn’t support your assumptions as closely as you thought. Or the project’s profitability might appear to be unpredictable over the course of time. Attending to such issues can make your overall business idea more attractive to other potential investors or might be enough to change the minds of initial rejecters.

6. Improve the pitch.
In a way your pitch is a consolidated version of your business model and should be strong enough to capture the attention of potential investors. This is especially true if you tackle crowdfunding.
When you speak for a minute or write a couple of sentences about the business, you should be able to explain the core concept and exactly why it’s a valuable investment opportunity to a prospect. If you can’t do that, your pitch needs refinement.

If you’re fundraising and already encountered a no, then congratulations. You’ve successfully completed the first step of the journey toward funding your business. There are dozens of routes to successful fundraising and none are straight. So when you encounter a major obstacle, take a minute to breathe, re-evaluate things and then keep working toward your ultimate goal. 

Related:  “7 Tips for an Investment Pitch That Excites and Inspires”

Jatson Demers Tips When Seeking Funding

Starting Your Own Business by Kylie Jane Wakefield

Starting a business can seem like a scary and arduous task. Especially if you’re used to waking up at 7 in the morning, being at your desk by 9, and clocking out around 5. With such a daily structure, life can feel stable. Having a steady paycheck, and not having the success of the company you work for relying solely on you can be a comfortable routine.

However, if comfort, ease and predictability aren’t what drive you; you feel unchallenged or dissatisfied at your life, perhaps there’s something more for you.
Just like you, there are many people who didn’t feel like they fit in at a full-time job, working for someone else. Rather than giving in or giving up, they chose to go the exhilarating (and often unpredictable) route of becoming an entrepreneur instead.

Why Start a Business?
There are many reasons why the idea of starting a small business is attractive to people. Here are some of the top ones reported by entrepreneurs across the nation.

1. Entrepreneurs can work for themselves. In a worldwide survey, it was discovered that the biggest motivator for Americans to become entrepreneurs is the fact that they can “be their own boss.”. According to CBS News’ Mark Hendricks, this is because the United States is a place where “individual freedom is highly prized.” Thus, people would rather be independent workers, looking after themselves, instead of being observed by higher-ups.

2. Entrepreneurs want to be more hands on. According to a survey from Cox Business, a reason why employees decide that starting a small business is right for them is the fact that they can “build something from scratch”

When you’re on your own, you feel a sense of satisfaction when you accomplish something. If you don’t meet your quarterly earnings goal at your small business, it falls on you. However, if you figure out how you can save money every month on your important expenses, you’ll feel like a million dollars. Working at a company, on the other hand, is a group effort, and you may feel like just another cog in the machine.

3. Entrepreneurs want more money. Money is another factor in employees’ decisions to take on a new career as an entrepreneur. Perhaps a person’s current job doesn’t pay enough, or he or she “started a side business that suddenly became lucrative”, and required more time than he or she thought it would. The job that seems like it will pay a better salary almost always wins out over the lower-paying one.

4. Entrepreneurs want to take on additional roles. Small business owners don’t fit into one job description. They are multi-talented and don’t want to be pigeon-holed as an accountant, data entry clerk, or human resources manager. According to Chron.com and More Business, an entrepreneur believes he or she knows how a business should be run, and “this motivates the entrepreneur to start his own business and get directly involved.” Instead of hitting their head against the wall when their boss makes a mistake, they can take charge and do it their own way.

Starting a Business on Your Own
If any of the above reasons apply to you or if you have your own motivations for going into business on your own, there are plenty of resources that can help you “find the best startup ideas,”,“make a plan,” , “chose a business name,” or “choose a business structure.”

Remember: opening a business isn’t easy, but if you’re truly passionate about it, there’s no time like the present.

Whether you’re interested in starting an online business or a brick-and-mortar company, LegalZoom can help you “choose a name,” choose the right business structure,”
serve as your company’s , “registered agent,” help with a “business licenses,” and more.