May 9, 2007

Links for 2007-05-09 [Digg]

Preparation…Immensely Important

Our primary goal at FundingUniverse is to help you find funding to grow your business. Many times entrepreneurs will come to us anxiously looking for capital; however, they are not prepared.  In order to raise capital, you have some work to do. The following is a short list of what you should prepare even before you begin talking to investors.

1.    Business Plan

Your business plan will generally take the most amount of time to prepare. This plan is not a concrete document. It will and should change over time. However, you should have a solid business plan written in order to show potential investors you are prepared for an investment.

2.    Do you know how much capital you need?
This may seem trivial, but it is not. Do your research. What goals do you need to reach break even or positive cash flow? Be realistic. Generally, you will not be able to achieve all of your goals. Focus on the goals which will have the greatest impact on your bottom line. After careful research, you will be able to determine how much capital your company needs.
3.    Do you have traction?
What have you done with your company so far? It is important to show what accomplishments you have reached without capital from investors. Patents, contracts with suppliers, manufacturers or distributors, customer orders and development of a website are a few of the things that show investors what you have been able to accomplish.

Again, this is only a short list of what you should have prepared. The point is, you must be willing to prepare. If you do all you can on your end, investors will be more willing to listen.