Before You Go After Startup Funding, Ask Yourself These Questions
When starting a new business, at some phase 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 sort of questions you’ll need answers to, both for yourself and for your potential investors.
Rather than dive into the process floundering, it’s helpful to at the least find out what some of these questions you need answers for are, if for nothing else than to get you serious about your responses.
7 Basic questions you need to answer for startup funding
How much capital do you need? –</ b> Having a clear idea about how much you need obviously simplifies the task a great deal. Investigate what your expenses are going to be, and keep in mind that it always expenses more!
What will it cost you? –</ b> What are you willing to give 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 comprehend on, and at the least initially not be swayed from.
When do you have to pay it back? –</ b> When are you expected to repay this investment? Are the terms you’ll be getting conducive to running your business while doing so? How much strain will this produce on the business?
What’s the growth plan? –</ b> This is a major factor your investors and you should both be interested in. Along with the growth plan a time frame is needed.
What are you putting up? –</ b> What is your fiscal stake in this? Knowing what you’ve got on the line can be reassuring for investors being asked to put up a lot more.
How much input do you want? –</ b> Constructing it crystal clear from the start how much outside input is wanted is a good idea. Many investors truly want nothing to do with this, but there are others…
Who buys and uses your product or service? –</ b> Who is the ideal client, and how do you plan to market to them? Having a firm grip on your eventual purchasers calms many investment anxieties !</ p
from Digital Team X http://digitalteamx.com/blog/before-you-go-after-startup-funding-ask-yourself-these-questions/
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