Startups Business – Determining if Your Business is Ready for Funding

Having the ability to raise capital is a key engine of growth in a startup business. However, before pursuing funding from venture capitalists (VC), other investors or through crowdfunding, a startup business must satisfy several requirements in order to not only increase its chances of obtaining the necessary funding but also to maximize the funding’s […]

  • Having the ability to raise capital is a key engine of growth in a startup business. However, before pursuing funding from venture capitalists (VC), other investors or through crowdfunding, a startup business must satisfy several requirements in order to not only increase its chances of obtaining the necessary funding but also to maximize the funding’s impact on the business. The four most critical requirements that capital markets will inspect very closely are:

  • 1. A complete business plan
  • 2. Detailed market research
  • 3. Realistic one and multi-year plans
  • 4. The expected payoff for the investors
One important additional consideration that a startup needs to consider is if the business has decent growth prospects without addition VC funding. One of the primary drivers of failure in startups is rushing to scale too quickly and drowning debt due to heavy, fixed operation costs.

1. A Complete Business Plan


Without a detailed and realistic business plan, a startup will find themselves coming back empty-handed after meeting with investors. The business plan is the foundation upon which the startup will be built presenting an overall summary of the startup business and the method(s) by which it will make money and achieve profitability. A good business plan will provide documentation for projected business costs, sales, revenue, profit margins and potential areas of growth either organically or through acquisitions. A business plan should give a realistic data on when the startup is expected to achieve profitability.

2. Detailed market research

There are many excellent ideas that sound great in theory but do not result in a profitable business opportunity due to a lack of viability in today’s marketplace. Conversely, ideas that sounded almost nonsensical at the time (e.g. the pet rock) were wildly successful in the marketplace. Solid research provides the grounding for the numerical projections when making a capital request.

3. Realistic one and multi-year plans

Even if a startup projects great growth during its first year, investors are going to want to see plans and projected growth over multiple years. The ‘holy grail’ that investors look for in a business is a potential to go public at some future point. Therefore, they will focus on the staying power of a business much more that a chance to turn a “quick buck”.

4. The expected payoff for the investors

Investors are apt to not provide funding for any business that does not offer a specific payout for them at some specific point in the future. This payout can take many forms, especially for crowdfunding ventures, but the promise must be explicitly mentioned.

If your startup meets all of this criteria and you are ready to pursue funding, contact us and let us help you grow your startup.

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Five steps to attract investors

Attracting investors for any business is difficult, and it’s especially difficult for a startup business, but if you’re ready to go after investment, follow these 5 steps to ensure success: 1. Know your product It is essential to have a strong, professional business plan. Just believing in your ideas isn’t enough, you need to back up your ideas with research and […]

Attracting investors for any business is difficult, and it’s especially difficult for a startup business, but if you’re ready to go after investment, follow these 5 steps to ensure success:

  • 1. Know your product
    It is essential to have a strong, professional business plan. Just believing in your ideas isn’t enough, you need to back up your ideas with research and testing. If your business includes a product, have a working proto-type that you can present to interested investors. Show them that you’ve done your homework and know that your business is ready to go.

  • 2. Know your market
    Know your market before your presentation by doing thorough research. Have the proof on paper to show potential investors that your product is in demand and you know who the consumers are and how to approach them. If there is competition, show how you are different or better. Know the growth potential for your business. Have a marketing strategy ready to reassure your prospective investors that you know your marketplace and have a clear picture of the future.

  • 3. Know your investors
    In the same way you look for your product’s target market, look for your investors. Check out crowdfunding sites for access to different types of investors. Study the sites carefully to find the best fit for your startup business. This will help you concentrate your search, give you ideas for what they’re looking for, and help you save time and energy.

  • 4. Know your pitch
    Know your facts, rehearse your pitch so you know it well but don’t be robotic, anticipate investors’ questions and have answers ready. Know your numbers so you don’t make a bad decision on the spot. Be calm and be yourself but be professional. Most importantly, don’t be over-aggressive or defensive.

  • 5. Let your investors know you
    Tell them your personal story and show them your passion and enthusiasm. Show them you are reliable and know how to use funds appropriately. It is very important that investors know you won’t take their money and use it foolishly, and you need to prove it to them before they commit.
Today’s business world is fast-paced and constantly changing so if you are looking for ways to attract investors to your startup business, you’ll be a step ahead if you prepare yourself well in advance.

If you’d like more information on this topic, or others, contact us and we’ll do our best to help.

Let’s do some realty Checks? :
Do you think your startup business is ready to receive investors Fund ?
Do you Really need investors Money, Read this Articles to know other source of investments

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How to Make a Successful Startup Business Plan.

So, you are ready to start your business. Your dream has pushed you to the cliff and you are ready to jump. And you’ve heard that you need to have a business plan. But what is that? How do you put one together? What do you need to have in your plan? There are actually seven […]

So, you are ready to start your business. Your dream has pushed you to the cliff and you are ready to jump. And you’ve heard that you need to have a business plan. But what is that? How do you put one together? What do you need to have in your plan? There are actually seven key sections to business plans that every serious startups business needs to have to guarantee success. And here is what they are.

  • 1. Business Summary This is a simple straight-forward look at your company. It includes the name and location as well as your mission statement. Anyone who reads this will quickly get a feel for what your business is about.

  • 2. Business Description This is a more technical expansion of section one. It includes the full legal name of your business, a brief history, and a projected aim or outcome. This is where you clearly set your company’s goals and main objectives down on paper.

  • 3. Products or Services In this section, you explain what service your company will provide or what product you will offer in order to achieve the goals you described in section two. You should also include your patents, copyrights, etc. in this section.

  • 4. Market Analysis This is where you will identify your intended market. You will identify who you will serve or to whom you will sell. You identify the demographic so you know who to market your business to.

  • 5. Strategy Analysis In this section, you determine the how. You focus on the strategies and systems you will use in order to effectively deliver what your business promises to the demographic you aim to reach.

  • 6. Organization and Leadership This is the part of your plan where you determine the key roles throughout the structure of your company. You develop your departments and the branches of each department in this part of your business plan. (You don’t need to fill in the chart with names of actual individuals at this point. This is simply the guide you will use to know specifically what roles you need to fill once you begin hiring people to help you lead your organization.)

  • 7. Financial Plan In this section, you will provide the historical financial data (if you are revamping an already established company) as well as your future financial goals and demands. This is the part of your business that many people commonly refer to as “the books.”

How to develop a successful business plan and what elements to incorporate will vary based on the needs of each company. It is not essential for you to have every component on this list nor is it a rule that you cannot add any additional sections. But if you are ready to build your plan and need to know where to begin, this list is a solid foundation that will help you to establish a solid business plan that will lead your company to success.

We would love for you to contact us to see how we can help you startup your business now.

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