3 Tips on Knowing Your Business Startup Is Ready For Funding
As you’re in the beginning stages of your business startup, whether before launching your business or after launching it, you probably will need business funding at some point. Getting the funding you want will depend on your timing and the preparation you bring to those investor meetings. Thinking about these different aspects will help you present your company its high potential as an investment opportunity.
You Have a Full Business Plan
According to the Founder Institute, having a cohesive and comprehensive business plan is one of the greatest indicators that you’re ready to reach out and get funding. When you can present your business plan with all its facets to potential investors, they’ll be much more likely to invest because your preparation indicates a higher likelihood of success.
Start with a General Description of Your Business
The first step is to write a general description of your business.
Type of Business
Describe what type of business you are starting, retail, manufacturing, industrial, construction, or some other type of service. Describe what the business will produce or sell.
Discuss how the business will be organized. Corporations are legal entities that keep the business and personal liability separated. A limited liability company (LLC) is another way to separate business interests from personal ones. Other forms include sole proprietorship, partnership, S corporations, and C corporations. The structure you choose will have legal and tax implications so, be sure you research and choose carefully. You may wish to talk to an accountant as you learn about which form your company will take.
Describe the facility you will use for your business, including an address and information about the area. Include the square footage and a layout of the business, if this is available. If your business is in your home, describe the space you will use. Discuss whether this location will be purchased or rented and the terms for purchase or rental.
Licenses and Permits
Include information on local ordinances that pertain to your business, as well as licenses and permits you have obtained or need to obtain.
Management and Employees
Describe the owners and management team of the business, along with the expected number of employees who will be working in the business. This will be a very brief description; you will eventually be doing a more detailed management plan in a later section.
You Established Cost-Effective Marketing Strategies
Having great marketing strategies is incredibly important for startups. When you’re excited about your idea and see great potential in your product, it can be easy to adopt the mentality that if you build it they will come. But don’t be lured into that trap. You need to have great marketing.
- A description of your “ideal customer” in terms of this person or company’s characteristics, attitudes, and buying behaviors. This description should be as complete as possible.
- A discussion of the information about the “population” to whom you will be selling, in terms of numbers and demographics, such as age, sex, education level, income level, and other important information
- A description of the buying behaviors of your target market
Even a great product might not make it big without it because no one really knows about it. As you figure out what marketing strategies to go with, consider a variety of options. According to Podium, SMS marketing is simple and cost-efficient, making it extremely helpful for small businesses.
You Know Your Product Works
Having a great business plan and marketing strategies before you launch your business startup and getting business funding is essential to know that your company will be able to continue growing once started. But of all the things you can do to prepare for the possibility of getting significant funding, according to Survey Monkey, figuring out that your product works well for your target customers is one of the most important.
If you can, try and start selling your product. Gather customer feedback. See how well your product spreads organically. If you start to get more inquiries or orders than you are currently capable of handling, you should go forward to get more funding.
Business Startup Funding
As you think about seeking out funding for your small business startup, you should make sure you are really ready to seek out that startup business funding. But in addition to this, it’s also important that you think carefully about the type of investor you want. Thinking through how much money you need and why as well as the offer you intend to make to that investment will help you be better prepared.
Apply to get funding from us today to get your business started!