Financing a startup business

When we look at successful businesses, we see nothing but an entrepreneur or a team that made a data based informed decision. Therefore, a successful business is an extension of a decision. The clearer the decisions, the more stable the growth of the business. But to start a business we need to access funds.

Most of the entrepreneurs perceive that seeking finance for a startup business is the most difficult part of the journey, where this is not the case.

A simple business model can consider friends, family or personal/startup loans to get the money needed to start. On the other hand, complex businesses have a bigger infrastructure – it may take longer to grow and need to access larger amounts and for longer periods.

Financing a business is not necessarily a matter of finding the money for starting a business or investing in growing a business, but a matter of addressing the opportunity to an investor in a simple and correct way. This being said, we must learn how to speak the language of the investor. No matter how impactful an idea might be, how much money it will make and how fast the business can pick up, it has no value unless it is addressed in the correct way.

If a startup business found a way to revolutionize something or connect some dots after a deeper look into various environments, this would be a sign that the business needs investment soon.

Creating a pitch deck to summarize the business strategy and planning, it is the same as pitching the concept to an investor. Their expectations are to find answers to the questions below:

What will the business do and how will it do it?

How will the business monetize?

Who is your competition and how do they do business?

Who are your clients and why would they buy from you?

How will the investor benefit from investing in your business?

What forces are pushing or pulling the evolution of your business?

So, if you have data-based answers to the above questions and you can speak the language of the investor, the chances to access money for your business are exponentially growing.

 

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