Today, the major milestone in front of everyone is to raise startup capital. Often the startup founders struggle with a lot of things and spend a huge amount of their time and energy in managing everything perfectly. However, the top most concern always remains the Capital.
The founders sometimes approach countless investors, and refine their business plans every now and then, all this just to raise some extra capital for their startup. It is not as simple and straightforward as many people might think.
For all these years and for all the start-ups, capital is somehow the biggest goal. Let’s see how you can raise capital for your start-up
Just having an idea will not be enough to raise funds and capital, your idea should be unique and something that has never been used before. Dig for something unusual and not so common.
Develop a Prototype
Now that you are sure about the uniqueness of your idea, develop a prototype. Here, the prototype doesn’t necessarily signify a sample model but it can simply be the unique and different features about your idea gathered together in a presentation.
Now that you are done with the prototype, check what others have to say about this idea. Present a good prototype or sample and see what user really think about it.
A Functional Model
While this might be the toughest step for the start-ups trying to raise capital. However, at least, try implementing one unique thing about your idea.
This step is also a very challenging one; you will have to work a lot. Use every social media you can, throw a party, use every possible weapon and just spread the word.
By now, you must be aware of the fact if your idea actually has any backbone or not, also if it can attract customers. Start with your working business model, good enough to help you raise funds and earn some profits (If not too much profit but, at least, stay at no profit no loss).
Extend your Product
Your product must now be in good shape, it’s now time to move a step forward and scale the idea and the product. Spread your wings wisely!
Create your Pitch
This step basically includes a research over where you fit in the market, and how prominent is your position in the market. Make a presentation and highlight the key points, this will help you pitch various investors and make them trust you.
Get the Money
Once you develop your pitch start looking for investors who can invest in your business on different platforms, like LinkedIn. Broadcast your product and catch potential investors perfect for your business.
Time to deliver the pitch
Trust is a very big thing while delivering your product you might want your investors to trust you fully. And for this trust, you simply need to be prepared for every question that comes up.
Keep refining your product
While you are in a quest of finding capital, keep refining your product regularly. This will not only make your product better but also increase your chances of attracting investors.
This could be the most important step. When you come up with a start-up, since that very moment you will face a lot of failures and rejection. Don’t be disheartened and start all over again. No one will give you money in one go.
Raising capital is a very crucial task and you need to be very careful with every passing step. Good Luck!
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