There’s a huge difference between reading about how to raise money, and actually doing it successfully. In addition to the effort and investment required, one major challenge many people have is adapting what they’ve read to their own situation. How do you know if you’ve done a good job of it? Have you presented your company and opportunity in a way that has the best potential for attracting capital?
Here are some questions to help guide your thinking on the subject.
- What is the fastest and best way for me to capitalize my company in my current situation?
- Is there a phased capitalzation approach that would best meet my needs?
- How much is my company worth now?
- How much could my company be worth in a few years if it achieves its financial projections?
- What kind of deal should I offer that will be fair to me and attractive to investors?
- How much of the company should I expect to sell to investors for the money I need?
- What is the most ideal capitalization structure for my company so that it will be appealing to investors?
- Do my current financial projections help or hinder my ability to raise capital?
- Are the assumptions built into my financial projections reasonable, defensible, and properly described?
- Are there any red flags in my financial projections that need to be resolved?
- Will investors believe I am looking for the right amount of money?
- What are the weak points of my company, and how should I address them?
- Does my business plan address the right issues in the right ways to attract capital?
- What is the right amount of information to include in my business plan?
- What is the most effective way to use my business plan?
- What is the best way for me to find and approach potential investors?
- What is the most effective strategy for presenting my opportunity to potential investors?
- How should I respond to challenges and objections raised by potential investors?
- How can I motivate interested but uncommitted investors to put the first money into the business and thereby catalyze my whole capital raising process?
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