The year 2016 wasn’t easy for entrepreneurs trying to raise capital to start their businesses. US venture-backed companies were able to get 30% less investment from Q2 ’15 to Q1 ’16.
Below you can find 3 important points to focus on when raising capital for your startup. These can help you be better prepared when searching for funding for your business.
- Fundamentals of Your Business
To increase your chances of getting capital for your startup, you should be able to represent the fundamental points regarding your business in a professional way. You need to show a track record of having scaled your business cost-effectively. You should prove you’ve spent your capital wisely while growing.
Focus on:
- Your unit economics
- Lifetime Value (LTV) and Customer Acquisition Costs (CAC) ratio
- Whether you’re making a profitable product on the margin
- Why You’re Going to Win
In the modern business world, it’s not enough to have a business idea: you should show results. When being on the lookout for business capital, you should show some tangible reasons why you’re going to succeed where others may not. For this, you should have a strong story that can have its impact on the lender and create credibility.
Build your strategy on:
- Capital
- Customer acquisition
- Technology
If you can cover all these points in detail, you can clearly state your strategy for winning.
- Be Ready for Resistance
Companies can strive to succeed in any environment. You should be ready to get rejected and not fall into hopelessness. Take each feedback calmly and build better operations taking into account that feedback. You may find out you need to change something in your operations, or you may need to communicate the key facts concerning your business in a different way.
Today, startups are living in an environment where it’s more challenging to get financing than before. It’s of vital importance for entrepreneurs to understand the strategies and tactics they develop to reach success.
To get funding for your business without major challenges, consider turning to firstamericanmerchant.com (FAM). First American Merchant is a reputable business loan provider and payment processor that specializes in the high risk sector. Your credit history is not a problem for FAM.
To increase your chances of getting the necessary funding for your business, focus on the fundamentals of your business, know why you are going to succeed, and be prepared to successfully stand the resistance in your way.