One of the most difficult steps entrepreneurs take when they first start their businesses is finding funding. Making your business seem viable to funders is a long process that requires research and some hard work – but it isn’t impossible.
In order to make your business viable, you will need to come prepared to answer questions that they may have, show metrics that prove viability, and calm some of the fears that funders tend to have when making decisions about whether or not they want to proceed.
So what exactly makes a business viable to funders? Here are a few things that stick out:
There Is A Demand For Your Product Or Services
Is there an audience for your company? In some cases, it might be a new product or service that an area doesn’t have. You will have to prove that there are potential customers in this area that you can reach. If it isn’t a new product, you may have to prove that the target market isn’t oversaturated and you will be able to stand up to the competition in markets where you have it.
There are a few different tools that you can use to get this information, and the more details you have, the better it will look to funders.
Meet Potential Customers
If you know your target market, then you may have an idea of where you want your business to be centered. If this is the case, then you can meet your future customers where they are. Don’t be afraid to walk around the neighborhood and shake some hands, introduce yourself, and ask some questions. The feedback that you get will help you to answer questions about your products and your plans for the future. Real quotes from real people telling funders what they need will go much further than you telling funders what you think people need.
You Have The Necessary Skills To Make It A Success
What skills do you have that will make running your business successful? It takes more than having a college degree. The more skills that you can have, even something as simple as knowing how to use email marketing or how to set up a website can help you immensely in showing that you are ready for funding. There are courses you can take online that aren’t very expensive at all that will go a long way in proving just how ready you are – even if you plan on outsourcing these things the moment you get a chance.
If you are starting a company or business with a friend, try to ensure that you both have diverse skills that don’t overlap. The more ground you can cover, the better. You may even want to network a bit and find people who are willing to help you with your skills. The more people you have on board and ready to work – like photographers, web developers, painters, interior designers, secretaries, assistants, or whomever else you will need to get this business up off the ground.
One of the most important things you can do is get and stay organized. You want to keep everything as neat and minimalistic as possible, but don’t be afraid of adding some flair. Present everything thoroughly and naturally – think through your presentation and figure out the best way to broach topics. Sprinkle in any of the points you believe may cause funders to back out.
Need Help With Your Business Plan?
Do you have a great idea for a business but need funders and a business plan? At IC Quantum, we can help you to present a business plan that will have funders lining up for your services. We have years of experience in guiding people to make the right decisions about their business, starting with feasibility studies and ending with working hand-in-hand with them to handle the bookkeeping once their business has flourished.
Ready to get started? Give us a call today at +27 87 980 0000 or send us an email at firstname.lastname@example.org to schedule an appointment.