See the 7 Questions You Need Answers to Before Soliciting Startup Funds
When starting a new business, at some point you're probably going to have to raise funds for it, and if you're like most of us, you haven't a clue regarding the types of questions you'll need answers to, both for your business and for your potential investors.
Potential investors will want to know your answers also, and rather than head into the process unprepared, let's help make you more ready by listing at least some of the important questions you'll want to have answers to.
7 Questions that need answers for startup funding
How much capital do you need? - Having a clear idea about how much capital you will need obviously simplifies the task considerably. Evaluate what your costs are going to be, and understand that it always costs more!
What will it cost you? - What are you willing to offer for this money? Is it going to be shares of your company, and how much is that? 10%? 25%? This is something you need a firm grasp on, and at least initially not be swayed from.
When do you have to pay it back? - When will you be expected to repay this investment? Are the terms you'll receive conducive to running your business while doing so? How much strain will this produce on the business?
What's the growth plan? - This is a significant factor your investors and you should both be interested in. Together with the growth plan a time frame is expected.
What are you willing to risk? - Are you willing to put up equity (other than sweat equity) in your startup? This can sometimes make it easier for others to see their way clear to invest.
How much input do you want? - Making it crystal clear from the start how much outside input is welcome is a good idea. Many investors really want nothing to do with this, but there are othersâ€¦
Can you name your target audience? - Having the ability to clearly identify your ideal customers is a comforting sign to prospective investors. It goes a long way toward helping them know that you really do have a handle on your business!
Are you ready to take your Auto Body Shop to the next level?