If you are considering acquiring funding and investments for your business, there are certain factors to consider that may help you succeed throughout the funding process by letting your company stand out from your competitors.
Of course, the best way to ensure that funders and investors will be interested in your business, is to ensure that you have an outstanding business. If your business is managed well, performs well, and you have a unique product and/or service offering, investors might even come to you! Some factors that are considered when analysing whether a business is worthy of investment, include:
- An undeniable value proposal
- A professional and driven team
- Excellent management of cash flow
Once you have established that you have a great business, you are ready to seek investment or funding solutions to help you scale your business. The following steps might help you to achieve success in your search:
Make sure that you have a clear scaling strategy in place
To convince investors to take notice of, and invest in your company, you need to present a clear, long-term scaling strategy that will assure them that funding your company is a good business decision. Know where you want to take your business if you receive funding and lay out a plan of how you will go about doing this.
Have a financial strategy in place that supports your business’ growth
As with a clear scaling strategy, you also need to have a financial plan in order to support your business’ growth ideas. In your financial strategy, you need to illustrate what your company’s cash flow will look like during your scaling process, and afterwards, to show investors why they should offer you funding.
Have all the necessary documents ready
To show your investors that you are serious about taking your business forward, be proactive and make sure that you have all the required documents ready for investors’ due diligence check. Some documents that are often required include financial statements, a detailed business plan, CVs of key personnel, tax compliance certificates, and more.
Make sure that your business’ HR and legal affairs are in order
When scaling your company, HR and legal matters are often neglected. This could hamper your business’ growth going forward, so rather make sure that all your compliance issues, including HR, are taken care of before talking to potential investors.
Adjust your mindset
Lastly, it is important that you think long and hard about your business and the possible gaps that may arise when scaling up. If required, you can always rely on the help of a professional service provider to assist with compliance matters while you focus on growing your business.