Expert Tips on Raising Capital
Richard Singer, co-founder and CEO of RaiseCapital.com and RaiseCapital TV, both outlets for entrepreneurs with start-ups, or existing businesses, to connect and share ideas with an array of investors regardless of geographic location, says that besides a killer business plan and concept, there are keys to attracting funding.
He shares a few tips for success:
- Utilize the Internet to post your ideas for venture capitalists to see. Venture capital funding is difficult to secure if you only speak to a small group of people about your idea. By posting on the Web, you are casting your net reach far and reaching the largest audience possible, thereby increasing your odds of finding capital. Most importantly, it’s free.
- Study your competition and seek out alternative approaches that will make your business unique. Venture capitalists will likely take notice of your creative idea and support a business where they can expect a substantial return on their investment.
- Demonstrate the market demand for your product or service.Whether an existing business or a startup, create a beta version of what you plan to produce on a larger scale with financial backing. If investors can see a beta Web site or the product you plan to later mass produce, they will be more comfortable supporting a promising enterprise rather than an abstract idea.
- Create a detailed business plan outlining what you plan to do once you receive the funding. Account for every expenditure and discuss alternative approaches you will take if the business begins to falter.
- When posting your idea on the Internet and developing a business plan, explain your previous work experience and how that will translate into your ability to effectively manage a successful business. The U.S. Small Business Administration reports that the most common reason that businesses fail is poor management.