Having a well written business plan is the first and most important step to be taken when seeking financing your small business. The business plan will clearly articulate to prospective investors the exciting prospects and potential of the business as well as serve as a guide to the entrepreneur on how to properly channel the finance raised appropriately.
Strong advisory board
Build a strong advisory board made up of experienced business and industry leaders who can provide you necessary business support to help grow your small business. A strong advisory board can enable you access advise on key areas of managerial, financial and legal issues which you may not get cheaply especially if you are a small business. They could also provide you connections to prospective investors. Many at times a member or members of the advisory board could end up providing you the funding you need to grow your small business.
Professional track record
A strong professional or entrepreneurial track record of success in similar businesses before or in a previous entrepreneurial venture can build the necessary enthusiasm amongst potential investors. It should be noted that beyond a beautifully written business plan, most investors invest in the people behind the business. The ability to communicate passion and an in-depth understanding of your business and industry is a great convincer any day.
Strategic networking whether online or offline is a necessary activity that every entrepreneur must embrace in sourcing financing for his business. Engage local chapters of business clubs, associations and alumni groups. Participate in business conferences and seminars. Connect with old colleagues and friends with relationships and networks within the investment industry such as Venture capital and private equity. Maximize the use of online business networks to solidify exciting business relationships, meet new people and push your business idea. Many of these networks will provide you unlimited opportunities to meet and pitch your business plan to prospective investors.