How to prepare for raising money
Depending on the funding path you choose, there are several crucial steps to take before seeking investment.
Write your business plan
A solid business plan is essential for attracting investors. It should detail your business's vision, goals, and strategies, including comprehensive marketing and financial projections.
Include a compelling executive summary that provides an overview of your business and a thorough competitor analysis, such as a SWOT analysis, to demonstrate your understanding of the market.
Understand your financial needs
Before asking for funding, you need a clear picture of your financial needs. Take the time to calculate your expected overhead and potential costs. The minimum amount of money you need to start your business depends on your industry, working capital, taxes, and where you operate. When building your financial projections, focus on your sales forecasts and expense budgets.
Rehearse your pitch
It’s time to prepare the pitch you’ll use to convince investors to fund your business. In general, you want your pitch to be around 45-60 seconds long—about the length of an elevator ride between floors—hence the term “elevator pitch.”
You can always rely on friends, family, and mentors for feedback. Once you have your pitch in order, you can record yourself making the pitch. You don’t have to post it on social media, but you can use the recording to see improvement opportunities.