Preparing for the next step in your business is a roller coaster of emotions. You're not the only one having to endure the anxiety of the unknown. You've spent time developing your brand, and now you have to get the money to keep it going. Asking for money can be daunting, but if you have confidence in your brand and its ability to grow, then you have nothing to worry about. I've created a checklist for you to refer to. You'll be ready to walk into the boardroom and pitch the hell out of your brand in no time.
Is your business plan done?
The one thing you have to be sure of is the completion of your business plan. Your business plan is the blueprint for the progression of your business. Make sure you have someone read it over. Having a second eye take a look is important and can point out things you've either missed or didn't know you should add.
What does your financial section cover?
Your financial section is an essential part of your business plan. Your financial section is what your investor will look at before deciding to back you. Make sure you have as much information as possible and be as detailed as you can be to explain how much you'll need and why you'll need it.
In the long run, you'll know what to ask. You can get an idea of whom to ask funds. You'll also understand what your business can cover on its own. Having investors is a good move, but the idea is to keep a small number of chefs in the kitchen. Being detailed will help you explain how sure are you that your brand will be sustainable after receiving the funds from your investors.
Do you know how much money you need?
Be clear of what you need. Have it written and ready to be pitched. Ask for what you need, nothing more and nothing less.
How to sway your investor
If your brand is already making money, this is good; it shows your investor that your strategies work, and their cash will offer your company the opportunity to function on a broader scale.
If your company is not making money because it hasn't hit the market yet, that's okay too. You can explain that you need start-up costs, and the money they invest will cover the overhead costs for your business.
If you've been in business and haven't made any revenue, this can make your investor weary. The way to sway them into your favor is to compare your old business model to your new one. Showing them that you understand where you needed help will put them at ease and more likely to give you funding.
Are you ready to negotiate?
If an investor asks for ownership and you're okay with those type of terms being negotiated to be sure that you're ownership outweighs theirs. Keep 50% of your company and negotiate smaller amounts of dollars instead of lessening your ownership value.
I hope this helped. If you have any questions drop it in the comment section and I'd be sure to answer!
Until next time make smart money!