If you ask any entrepreneur, he will tell you what a challenging task it is to raise funds for a start-up. As it is not everyone’s cup of tea, it is also one area where many entrepreneurs fail. In fact, it is probably one of the first tests of whether the entrepreneur can successfully transform an idea into a business. After all, without money, the business may never ever get started. The fund raising exercise is also probably one of the first contact and interaction the entrepreneur has with potential investors. Mr Inderjit Singh – The Art and Science of Entrepreneurship
Pick up any article from a startup blog, or a business magazine and the chances are that you will be reading about fund raising. This topic has been a hotspot since the dot com days, with entrepreneurs today still facing challenges to raise the funds they need to get their start up off the ground. It is an area, which can be very challenging even to the experienced entrepreneur.
Many fail to understand the people(investors) sitting on the other side. They fail to understand the importance of their pitch and their story that gets the all-important buy in. Like in any advertising/marketing campaign we have to understand our customers (in this case investors) very well. It is important to know them well, and to target your story to them. It is your story (pitch) that will hook them and reel them into buying in.
As entrepreneurs we need to understand the whole game of fundraising, so that we can play it well. Now there are many different ways to go about it, and many people are giving advice. They may be good and really helpful, but we would like to touch a bit on the fundamentals of fundraising. As we have stressed before, it is important to do your homework and get your ground structure right.
Thus, in the coming weeks we are going to discuss further the 3 Rules of Thumb of Fundraising.
These rules are namely,
Here at EntreCity, we look into helping you to build a strong foundation for your business. To build that structure, entrepreneurs need to have a very strong understanding of the whole concept, especially the basics of it. Get your fundamentals and your mindset right and you will be powerful enough to take on the world.