It never ceases to amaze me, when I’m approached by business owners seeking funding or financing, by just how many different projects or ideas are out there. Everyday I open my email and discover it’s full of requests. Of course, money’s hard to come by. While I assist with commercial financing projects, ranging from £250K to £500M, I realize that’s only one area to find the money you’ll need. It may not even be the right direction to go with your project. That’s why it’s important for me to communicate regularly with angel investors, venture capitals, and other lenders. Please understand, we would all love to help you out, but you have to help us as much as we help you. With that being said, I’d like to share several pointers to help prepare you for the journey ahead.
1)Be prepared to hear the good and the bad. I know you think you’ve got a great idea, but try looking at things from the investor or lender’s viewpoint. Practice your presentation in front of people who aren’t going to give you a biased opinion. Ask them for their feedback. Better yet, have them ask you the toughest questions they can come up with. Make sure these folks sign a non disclosure agreement, when you conduct this type of presentation.
Speak with your solicitors and accountants, their experience and expertise is invaluable. They’ll be able to tell you what documents you’ll need and what you can expect from investors and lenders.
Don’t expect to receive money overnight. It’s not going to happen. Depending on the type of financing or investment you’re seeking, you could end up waiting several weeks or months before you receive your funding. Speaking of which, never assume you’ve got your funding. Don’t do anything until you’ve got your money firmly in place. Something unforeseen can happen anytime, so don’t start making promises you may not be able to keep,
You’ll need a business plan or an executive summary and at some point your financials will come into play. Make sure your financials match and support what your asking for.
2)Research your investor’s and lenders. You’ve got to know who you’re dealing with and the types of projects they back. You don’t want to waste their or your time. If you’re looking for funding for a farming project, it wouldn’t make any sense to approach an investor who’s looking to invest in internet technologies. Visit their websites like <a href=”https://www.cobrapaydayloans.co.uk/” rel=”nofollow”>https://www.cobrapaydayloans.co.uk/</a> and really do your homework.
It never hurts knowing a little background about who you’re seeing. The more you know the better off you are. Knowledge is, after all, power!
3)There’s nothing wrong with humility and confidence. It’s a fine line, but the right combination can have a major impact. We all love seeing business owners that display passion in their products or services. What I’m referring to is the actual valuation of your products or services. You can be excited about your product or service, but if you overvalue these services and boast significant returns on investment, you will probably turn them off.
4)Have backup plans in mind. Make a list of what you’re looking for. It never hurts to ask why or what you should change, if you’re rejected. Rejection isn’t the end, it just means you have to find another solution. If your first option doesn’t pan out, you’ve immediately got another option in line to speak with. If the previous option lets you know what was lacking, you’ll be prepared the next time.
5)It doesn’t hurt to get creative, but don’t forget flexibility. You’re asking a lot of them, sometimes they may feel like you’re asking too much. In that situation, perhaps you can come up with creative ways to sweeten the pot. If it means giving up a little more than you initially wanted, don’t be afraid to do a little bartering to come up with a mutual agreement.
6)You never know where a hidden investor may be. Networking events can be a hidden gold mine. Don’t be afraid to let people know what you’re trying to do. There are a lot of folks out there that happily invest in projects they believe in. The truth is, these types of investors aren’t going to make a public statement. If everyone knew they invested, they’d be mobbed by folks seeking money. If you’ve created a new pharmaceutical product and need an investor, you should be attending functions or events where medical professionals are in attendance.
7)Never give up. If you truly believe in your product or service, you should never give up. If it means you have to approach family and friends to help you raise some money to get started, then you have to do it.
8)Don’t take rejection personally. It’s not going to get you anywhere. Thank them for their time with you. We understand you may be upset, but don’t let your anger and frustration get the better of you. You never know who our connections are. Disrespect can have far reaching consequences, so handle yourself with the utmost professional-even in the face of rejection.
These are a few tips to help you out. Good luck and happy hunting!