Funding for business: Passion
Seeking outside funding for your business is a big step. Whether you’re expanding your company or starting a new one, it makes sense to feel a little nervous. If you combine your passion for your company with detailed financials and meticulous planning, there’s nothing to be afraid of.
Have a plan, know your stuff and add some spark
- Investors want to know that you have a plan – They also want to know that you understand it. This means writing a detailed business plan. You need to get into the nitty-gritty of your financials and know the details by heart.
- Business plan – A business plan should detail where the business is at, where you want to go, and how you’ll get there. Business plans explain the opportunity, examine the market, look at skills and resources, and lay out a business model and a financial forecast.
- Financial details – Supply specifics for spending the funding, sales forecasting, balance sheets, profitability predictions and details about your salary. For example, if you’re expanding an existing business, you’ll need to provide at least two years of accounts and tax returns, as well as potentially profit and loss statements. The lender needs to know you’ll be using the funding in a meaningful way to develop your business, and that you’ll be able to make the required payments.
- Show your product or service – Show a mock-up, prototype, pictures or screenshots – something tangible that can help bring your idea to life.
Pitching with passion
Successful pitching isn’t about tricking investors into taking a risk – it’s about sharing your honest belief in your company. Be upfront about what you know and don’t know, get excited about your product or service and hope that the investor will share your enthusiasm.
Have you got the passion sorted, but need help with the numbers? We can help with forecasting, profit projections and other key financial details – get in touch now.
View the full Xero article here