We’re delighted to bring you another guest blog from Innovate UK on funding for start ups…
Pooling together the cash you need for your start-up can feel like an almost impossible endeavour, no matter where you’re currently sat in the funding cycle.
You’ll need investment to sustain the longevity of your business – it’s a core part of genuine development and expansion. Appealing to investors and grabbing the funding you need should be a top priority.
With that in mind, we’ve compiled together a list of tricks and tips to help you make the most of your resources and optimise your efforts.
Trying to target potential backers? Or are you just curious as to what’s best for your business? Either way, we’ve got all you need to know down below with our tips to start-up funding.
Outlining Which Funding Stage You’re In
The first step you’ll want to take is evaluating your start up. You’ll need to determine where in the funding cycle you’re currently settled.
Ask key questions about the progress of your business. Are you earning profits from your services and is your product far along in development? Having an awareness of your position will help direct you toward the types of funding you should be pitching for.
Establishing self-reflection with regards to your funding stage is crucial. Those seeking to invest in your vision will want to see an understanding of your own business.
Explain Your Reasons for Funding
You’ll need to understand thoroughly each stage and all of the different requirements they entail. The amount of funding you ask for will need to be appropriate and realistic in relation to your targets and business goals.
Investors will want to see proof of concise, obvious needs for their money. Show them where their funding will be used and how you’ll be making the most of it. Demonstrating a strong pitch and clear direction will make obvious your confidence and personality.
Get to Know Your Target Investors
Investigate those likely to fund your start-up and get to know your target investors.
Being aware of general behaviours and risk appetites of investors at different stages, and the ways in which they differ, will help increase your chances of success. Get clued up, extensively research and familiarise yourself!
More knowledge on who will be looking at your start-up allows for a better grasp on which approach to take. You’ll know how you’re perceived by those that matter and you can adapt accordingly.
Be sure to know your financial needs, business milestones and current progress reports, as these will influence the types of investors you’ll garner interest from. Be conscious of the types you’re appealing to, what’s suitable and what you’re actually asking for.
If you misjudge, it may hinder your efforts!
Timing is Crucial
Monitor your start-up closely and determine which areas need expansion. Find out what you need to do and where in order to move into the next funding stage, as this will make clear the best time to make your pitch to investors.
Successful timing will allow your long-term goals to be met in a sustainable way. You’ll avoid falling short later when new backers
become interested. With sustainable growth, you’ll be able to keep moving from positive to positive long-term!
In need of some more guidance when it comes to business ventures and all things start-up? Be sure to follow Innovate UK on Twitter and subscribe to our YouTube channel for the latest news, tips and advice.