Tips To Successfully Secure Your Funding Round

According to Newton’s laws of motion, an object at rest will remain at rest until it is acted upon by an outside force. In other words, everything needs a little push to start moving. The same is true for your business, whether you’re just starting out or already an established player. Getting your ideas off the ground means you need a nudge in the right direction in the form of capital. Investors are out there to help you, but it’s important to remember that they won’t be doing this out of the goodness of their hearts. They’re looking for a good return on their investments, and it’s your job to convince them you can provide it. This makes building your pitch one of the most critical aspects of growing your company.

Building a Better Pitch for Investors

Crafting your message begins with highlighting what makes your pitch unique. There’s a lot of competition out there, and unless you can lay out what makes you and your team stand apart, there’s little chance you’ll be able to secure funding. You need to understand who your target market is and how you’ll be able to provide it with a solution that’s otherwise lacking at the moment. What do your intended customers want, and how will you give it to them in a way that no one else can?

Another crucial element of a successful appeal to investors is much more down-to-earth. Promises and platitudes can only take you so far. You need to demonstrate that you have a strong knowledge of the industry and sound financial forecasts for at least one quarter. It isn’t enough to say you’ll be a success — you need to provide a reasonable prediction of how successful you’ll be. How soon can you provide your investors with a profit?

Backers also want to know if you have the brainpower and muscle behind the scenes to deliver on your promises. This is why including a breakdown of your team in your pitch can go a long way. Highlighting the expertise and skills you have on board can be extremely convincing. Who makes up your team, and what do they bring to the table?

Without funding, it’s nearly impossible for you to overcome inertia and get the ball rolling for your company. Investor partners are the engine you need to start your forward movement, but you need to know how to tap into the energy they represent. To learn more about successfully securing your funding round, take a look at the accompanying resource.

Infographic created by Donnelley Financial Solutions, an SEC reporting software company