5 Tips to Successfully Raise Capital
Successfully raising capital for your growing business is harder now than it has been for a long time, but these strategic tips may boost your odds:
Demonstrate a strong track record.
- Companies that can document strong historical financial performance will be able to get a foot in the door with banks and potential investors. Start-up entrepreneurs will need healthy industry experience and a robust network.
Be specific about your capital needs.
- If you meet with a banker or investor and ask for whatever the bank will lend you or the investor may invest in your company, both will know you have not put much thought into your business plan and capital request. Remember to set S.M.A.R.T. goals – make sure objectives are smart, attainable, reasonable and time-driven.
Leverage your relationships.
- You will not always get the best deal from your existing bank or investor relationships, but if they know and like you, it may help your chances significantly.
Know it all.
- Be prepared to answer any question about your business or investment opportunity, have lots of supporting documentation and be upfront about your strengths, weaknesses, opportunities and threats.
- If one capital source won’t lend or invest in your company, the next one might.