3 startup funding tips to help launch your company

Starting a startup is one of the most terrifying and rewarding experiences anyone can ever have. It is rife with hard choices. Coming up with the product and showcasing it to people you know and outside investors is an incredible thrill. There is also immense stress that comes with owning a startup. This comes, primarily, in the form of finances.

Those who own a startup know that money is hard to come by and that whatever money there is is immediately put to use. That is why venture capitalism has grown to the rate that it has. In the early 2000s, startups were not the hot ticket that they are today, and since the tech boom we have seen a dramatic rise in the amount of startups year-to-year. The issue is not where to get the money, but how.

In this article, we hope to cover the basics of startup funding that will increase the amount of exposure you get and increase the odds of receiving funding. Most great ideas are just dollars away from becoming the next big thing. It is important to do your research and never quit.

1. Focus on vision.

One thing that advisers and investors will both look for in a company is what that company stands for. In essence, it is important to reduce your business to a singular idea that represents the whole accurately and with great fervor.

The goal of your business should be stated clearly so that any potential investor knows exactly who they are investing in. For instance, if your business is centered on helping the disabled use computers, then state that clearly and let investors know. Simply put, investors do not want to invest in entrepreneurs who are only interested in making money.

While making money is a positive thing, it should not be the sole reason for any endeavor. Your company’s vision should be the key aspect of your pitch and your investment stack.

2. Run the data.

It is crucial that all entrepreneurs know their business inside and out. This means searching for similar businesses and getting their numbers. Get to know the market like the back of your hand and keep a record of any data you come up with.

Investors want to see the average ROI in an industry. They want to see what the average operating cost is and how much they should invest to make your product viable. Even though this can be a difficult step, there are a number of outside resources that can gather market data for you, and it is an important step to learn everything you can about the market you’re entering.

3. Seek more than money.

One of the most valuable assets to any entrepreneur is a trusted adviser who can help you in your journey to success. It is tempting for startups to go out into the world and make deals on their own. While that is a fine strategy to use, it may not be the best way to go about funding your business.

Seeking the help of an adviser can save you a lot of headache and heartache. Typically, advisers can help you manage your funds and gain traction in the venture capital world. Ambling through the dark to try to find funding can oftentimes lead to deals that are either one-sided or unsound. Having an adviser there to guide you and double check all of your work can prevent loss and will give you the edge you need in negotiating. Indeed, one of the most valuable assets to any company is their adviser.

When starting a startup, you are faced with an overwhelming amount of tasks and things to do that can hamper your progress. Add the need for funding on top of everything else and then you can get you into a real snafu.

The best way to fund your business is simple. You have to be yourself and know your value in the market. You also have to trust outside help to guide you in your path to business growth. Through the use of advisers and in the process of synthesizing your businesses goals, you can make a business that will succeed in any climate. Funding a startup can be a laborious task, but, if you know how to approach it, you can make it an exciting journey that validates your business and leads to a land of opportunity.

Written by Greg Robinson for CW Magazine.