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Essential Tips to Help Your Startup Secure Funding

So you’re seeking investment for your startup? This will play a huge role in the success of your business. No pressure then. We’re guessing you’re pretty daunted by the whole situation. The truth is, you needn’t be. First thing’s first, you need to get over the mental block that surrounds asking for money. It’s unnatural and uncomfortable but it’s also imperative to your startup’s future. Innovate UK have put together a collection of tips and hints that’ll help you on your way to securing funding.

Explore All Opportunities

A lot of startups go straight for investment. This might not be the right approach for you. It’s very easy to be swallowed up by the enormity of what you’re doing. Take a moment and consider your options.

Conrad Ford, CEO of Funding Options explains: “There are dozens of ways to finance your business, depending on your stage, sector or location.”

Your choice is important. Research the different grants, loans, investment options and crowdfunding opportunities that are out there. Be mindful that family can also invest in your business. Just don’t mess up with their money.

If you do choose to go for investment. It’s important to pick someone who’ll offer more than just money. The best type of investor will open doors, offer insight and take an active interest in the business.

Ask for the Right Amount

It’s easy to mess this one up though it’ll seriously put investors off. You need to be realistic about what you’re seeking without coming up short. If you ask for too little, investors will be concerned about it running out before they see a return. If you ask for too much, your brand could be out of reach from valuable, smaller investors.

The question is, how do you find that perfect middle ground? Look at what you want to achieve. Build a realistic plan about how you’ll get there and how much you’ll require. Then look at when you’re likely to start seeing a return. If you’re still stuck or you’re unsure whether it’s the right amount, do some competitor research. Find out what other brands in your market needed. This kind of research is important to do properly, it’ll be helpful for your pitch.

Understand the Numbers

A market may be worth millions but that doesn’t mean your business will see that money. You need to look beyond the market value and actually focus on what percentage you’ll hold. Be down-to-earth about your approach to this, overestimating can be seriously dangerous.

Kelsey Lunn-Skinner, Director Technology Ventures at Imperial Innovations states: “Investors want a big market combined with a realistic, detail-oriented go-to-market approach”.

When you start out in business, it’s crucial to know what you’re getting into. Doing a full and varied research of the market will give you the knowledge you need to succeed. It’s also vital to securing funding. If an investor can’t trust your knowledge, why would they give you their money?

Present an Awesome Pitch

You have to be convincing when you pitch for investment. This goes back to what we just said about getting an investor to trust you. An investment is often made in a person, not a company. So be charismatic and knowledgeable.

Give a snappy but thorough briefing on your brand. Make sure your numbers are spot on and your deck’s seamless. Remove all doubt from the investor’s mind.

Rassami Hok Ljungberg from startup and networking company 2Pears has this to say: “Our experience of training over 950 startups to pitch shows that the best, most impactful pitches are short, sharp, succinct, and to the point. Show why your ideas is unique and disruptive, and – most importantly – how you will deliver a return on investment.”

Leave Yourself Enough Time

Funding a business isn’t an overnight thing. You often have to court business leaders and engage in lengthy talks over a prolonged period of time. Even the best brands can experience delays in securing investment.

Whilst this wait is taking place, you need to be sure you can keep your head above water. Never put all your eggs into one basket, it’s a recipe for disaster. The biggest cause for startup failure is a lack of money. So be sure you can survive without it.

This was posted in Bdaily's Members' News section by Charles .