What’s The FIRST Thing You Need To Do Before Fundraising?
Every organization now and then needs to raise funds, whether as a startup, growing, or experienced company. The need to raise funds may be for philanthropic, educational, environmental, research, or business-related causes. Without these funds, even the most perceptive startup founders struggle with creating prototypes. Not to mention marketing and generating enough investor interest that can propel future financing will also be a challenge.
To get an investment or funding from any donor or Venture Capital (VC) firm, you need to be knowledgeable on the how and where of fundraising.
When approaching any fundraising, you must start with a well laid down plan. With this in mind you have a process to keep you on the right track through the process of pitching and decision-making. I have put together five key steps that can help make your fundraising plans run a bit more smoothly.
Outline Funding Goals and Objectives
The most crucial step to start your fundraising process is to outline what your funding goals and objectives entail clearly. Document these goals and objectives in your business plan. Subsequently, you can transfer it on your investor pitch deck (a slide presentation) that will contain:
- An Introduction: precise details on who you are and the reason for the pitch
- Team: persons behind the project and their roles
- Problem(s): what are you trying to solve?
- Solution: what solution do you have to the problem?
- Product: explain how your product or service will work and include examples with visuals
- Advantages: what makes your answer stand out from others?
- Market: prediction or a basic analysis of your target market
- Business Model: how will your product make money or make the impact you are driving at
- Competition: who are your competitors, and what edge do you have over them?
- Timelines: what are your deadlines?
- Financial Summary: what amount of funding do you need?? What’s your budget?
- Contact: details of how to reach you easily.
Pitch deck not only serves as a roadmap to keep you on track, but it also gives your potential investors a detailed insight as to how funds will be allocated. In like manner, it shows them how the funds can help in contributing to the success of your organization or project.
Create Your Budget
This step can be a tricky one. For start-ups it can be harder coming up with an accurate budget when you have limited precedent to build on. During budgeting, it is also essential to find ways in which to maximize the investment.
To create a budget that is accurate and present to your investors that their money will appropriately spend. Of course the budget needs to show the annual organizational budget that details your goals with projected expenses and income.
Research for Investors
The third step to take when planning fundraising is to find suitable donors or VC firms for your project. Again, these tips will help guide you through your search:
- Ask for Referrals: Investors have a way of being more willing to listen to your pitch when you have been recommended to them. It is vital to connect with people who can get you great referrals. You can start by connecting with mentors, industry leaders, community foundations, peers, and contacts who have worked the turf when it comes to fundraising
- Get online: Thanks to modern technology, with a few clicks on the internet, you can find information on funding opportunities that benefit and aligns with your project.
Perfect Your Pitch
After finding the investors that align with your project or startup, the next step is to make your pitch-perfect. It is important to put together all your documents. Such as your business plan, pitch deck and all you need to show your investors that your idea is worth the investment
By all means make your pitch compelling. Let it show the essence and passion behind your idea and don’t leave the investor in doubt. At first glance, the investor should easily know if investing in your business is worth. The investor should also sense what’s at stake if they don’t choose you? Equally important, if your pitch needs a touch of professional writing to give it a boast, Online Writers Rating provides excellent writing services.
Follow up. DO NOT Relent.
So now you have made your pitch to potential investors, you wait. You are hoping things start happening right away. Sometimes it does, and sometimes it doesn’t. What do you do while you wait for a feedback? You need to follow up, don’t wait for the investor to reach out to you first. Truth is, they might not.
Additionally, it would help if you kept the conversation going with calls, texts, and emails. A great tip to reaching out to your investors is to have a good understanding of your investors. With this, you know the best way to contact them and the best time to follow-up to guarantee you a response.
Consistent and well-timed follow up will increase the odds of raising the funds you need.
Impressing your investors and getting them to invest can be a daunting task. Most especially if it is your first time putting together fundraising. It would be best if you showed them that you had done your homework, and the funds you seek is an integral part of your project.
Gregory is passionate about researching on new technologies in both mobile, web and WordPress. Gregory in love with stories and facts, so Gregory always tries to get the best of both worlds.