How to Get to “YES” When Fundraising for your Start-Up

If you are starting your own business and you don’t have your own private fortune to fund it, you must consider your fundraising options. It is important to create a strategy for raising sufficient capital to not only start your project, but also to keep it going in lean times.

• Keep it professional. Although you will be seeking investments from family, friends and aquaintances, it is important to act as professional as possible. The relationship alone adds the personal factor, but being polite and professional will earn the other party’s respect. Also, remember that most business owners face numerous obstacles and rejections on their road to success.
• Be patient. Although you are probably excited about your new business and ready to get it launched as soon as possible, it is imperative that you be patient. Raising capital is a long-term process. In fact, it can take months to close the deal even after you have obtained a committment for funds.
• Get creative. There is no single “best way” to raise capital for your business. If your first plan of action does not work, be flexible and explore other available avenues. Angel investors, crowdfunding and private lenders are not the only options for fundraising.
• Learn as you go. If your business model is being rejected, you may want to consider asking the individual why he or she passed on your venture. Reviewing your business plan for any weaknesses can result in making your idea more attractive to potential investors. In fact, making simple changes may make all the difference with the next investor. The same is true for your pitch to investors. Make sure you practice and refine your pitch until it is strong enough to truly capture the attention of potential investors.