According to Mark Roemer Oakland, seeking business funding can be an intimidating affair. You need to get everything in order so that you can impress your investors and secure the funds needed to grow your business. Let’s check out common mistakes to avoid when seeking business funding:
- No financial statements – When you’re seeking business funds, paperwork is the most important tool. No one is going to entertain you unless you have financial statements that show the profitability and stability of your business. You need to be honest with your investors and show some sincerity with paperwork. You need to clearly show every dollar that comes in and goes out of your business.
Even if you have a business that primarily deals in cash, you need to get an accountant and have them prepare the financial statements for your business. You can even seek help from that accountant while seeking business funds. An accountant can clearly explain those financial statements better and invoke confidence in your investors.
- No business plan – If you show up to a bank or an angel investor without a business plan, your prospects get killed as soon as you walk through that door. It shows that you haven’t done enough research and aren’t serious enough about your own venture. Equity investors want a concrete business plan so that they know how their funds are going to be used and how it can bring them handsome returns.
With a business plan, you can communicate and show your investors your long-term goals and display the methods that will allow you to achieve them. Your business plan needs to have revenue projections and clearly show your strategies that will help you keep an edge over your competitors.
- Don’t go alone – When you seek business funds, don’t ever go alone. Everyone loves reading about one-wan shows where one person creates a billion-dollar company from scratch. However, very few have the courage to invest in such businesses in their early days. Instead, get a business partner who has a financial stake in your venture.
This person will brainstorm ideas with you and talk you out of the bad ones. They will also help make important business decisions and share the risks that come with them. Investors are more confident investing in a team rather than one person. This assures them that their investment would be secure, and the business will continue even if something happens to one of the partners.
- Research your funders – Whether you’re going to a bank or equity funders, you need to research them thoroughly. Study their portfolio and research it to figure out what they like to see in a business and how you can offer that. That knowledge will help you immensely while you pitch your business plan.
Mark Roemer Oakland suggests that you avoid the above-mentioned common mistakes while seeking business funding. It leads to a smooth process that can help you secure your business without frustration.