Raising money to fund a business project or SME financing already started working on the market, but need a boost to continue growing, it is a challenge for entrepreneurs. Go to relatives, close friends or a bank may be one of our first choices, but also participate in contests or find investment partners are other two great alternatives.
A speech before a jury or a business appointment can be a key to getting the business budget; here are some essential questions that have to be prepared to answer:
Who are your customers and what problem you solve for them?
The marketing-oriented customer as the center of our strategy gives a good knowledge of the industry, consumers and their needs. It is not enough a demographic profile but also how it works the mind of the customer and the market. Also, if your product solves a customer’s real problem, not a subjective assumption.
How you’ll capture more consumers? How will retain?
A cornerstone for the operation of a new company that know how to reach the customer and as retained. If you already started your business and have customers, the best way to achieve this is through metrics to demonstrate it.
Why are you better to do this? What is the difference of the competition?
It is important to show a multidisciplinary team, market-oriented and committed to the project. It is essential to be clear on the percentage share of the joint venture partners. Prove you have a solvent business model and details what makes you different from the point of view of customers, competition and identify what the barriers to competition will. Be careful if you say that there is no competition, since that can insinuate that there is no market to exploit.
What are the economic expectations?
Funding for SMEs comes hand in hand with a promise, that of the profits. A coherent picture of costs, revenues and capital are proof of the effectiveness of your implementation plan. You must define how much money you expect that your investor should win with this operation and assumes the risks and possible solutions.