We know a lot about accounting, lending, small business and personal finance here at the Rules of Thumb blog from MoneyThumb. However, no blog is an island and we must admit we are on the learning curve when it comes to fundraising and finding investors.
So in order to give you the best information and advice on how to make sure you set up your small business in the beginning to be fundraising-friendly and attract investors in the future, we are turning to the experts. This means when you are trying to find the best way to start out on the right foot with your small business so that fundraising and locating venture capitalist is simpler and more streamlined down the road, we have done the research for you! Yes, you're welcome. 🙂
Of course there is a ton of online information concerning fundraising for your startup, but not a lot about a startup with future plans for fundraising and finding funds through investors to bring your business to a new level Therefore, we have done our best to hone in on that particular skill set. The two best articles we found are linked below, with a detailed description of what you will find there. Please let us know if these links helped you decide the best way to enter the field of fundraising and finding investors for your business so you can always be a step ahead of the pack!
Setting Up Your Small Business to Be Future Fundraiser-Friendly
This Inc.com article written by Brent Freeman, founder of Roozt, titled 5 Things You Need to Know Before Fundraising, states that the company was founded with $500 and a dream. So the information about how to make your small business future fundraiser-friendly comes straight from the voice of experience. Number 4 in Mr. Freeman's list of 5 tips is especially crucial, in our opinion:
4. Know Your Numbers
"Data--one of my favorite quotes pretty much sums it up: "In God we trust. All others bring data."--W.E. Demings. If you do not know the key performance indicators (KPI's) of your organization, what drives them and what affects them, it will be virtually impossible to convince anyone to give you money. This applies to both for-profit and non-profit organizations. Take the time to really understand the numbers around your business, industry, market, customers, product, COGS, and operations so you can know exactly what you need to do to be successful and explain that to investors. Your ability to take complicated matters and turn them into easy-to-digest chunks is critical because you generally only have a few minutes of an investor's time to get them interested."
Our second favorite article is straight from the horses mouths, since it is specific things investors look for from actual venture capitalist. This article comes from the Fundable blog. Below are a few quotes from the article and the investors interviewed:
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