05 Feb How to Get Funding for a New Web Business
Despite what you may think, it is still possible to raise funding for a new web start up. The proposition you are offering the potential investor is most likely to undergo more scrutiny but if you have a good idea that is well supported with a sound business plan, you could be well on your way to getting that magic investor on board.
The main points to ensure you are clear on are;
1. Business Plan – Ensure you put together a sound business plan that covers all aspects of your business from start up to the potential exit for the investor. You will need to clearly demonstrate how your business will make money in the early stages and how it will continue to generate revenues and profits ongoing. If some of the investment will be spent on marketing (which more than likely it will), then you need to demonstrate why the money is being spent in this way and how this will give clear results to your business.
2. Uniqueness – It is not absolutely essential but you will always be in a much stronger position if you have an idea that is unique and original If you are copying or replicating an existing business model, you will need to be able to convince the investor in the business plan as to how you can compete and succeed.
3. You and Your Team – The investor will need the confidence that you have built up a solid team around you. It is important to be able to rely on your team and if you are on holiday or taken ill, the investor will need the confidence that the business can still run in your absence.
It is worth considering at the outset, the revenue share you are willing to give away to the potential investor as you can be sure that they will no doubt try to negotiate with you to get the best deal possible for themselves.
Be confident, professional, well turned out and be prepared for a bit of a grilling. There is a miss conception that because you are dealing in the web, that you can turn up to meetings looking casual in jeans and t shirt. This will get the back up of a lot of potential investors and nobody is going to turn you away for looking too smart. With the right business plan and the right attitude you have every chance of securing some investment. Good luck.