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Whether it is a franchise, multi-channel business, or any other opportunity, you need to take many things into account before seeking to invest. If you’re starting a small business or looking to expand your firm, you may seek financing via a traditional loan or borrow cash from a friend. But if you seek funding from investors, your next step is to find out how to draw them in.
We all poured our heart and soul into a business, but how would you fare if investors like angel investors, VCs, and bankers were to evaluate your firm? Do you know what components will drive their decision to invest? The process of getting startup funding may put you on edge for a while – not because you know your company, but because you’re unsure what potential investors will ask.
We’ve worked with entrepreneurs from many industries and curated steps to help you attract investors and get funding for business growth.
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Build a Solid Business Plan
Your business plan should explain one crucial thing to investors that your business is worth enough. Clearly outline your business goals and demonstrate your team’s expertise. Show that you have an in-depth understanding of your target audience and give a description of the products and services you offer.
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Build a Financial Model
Be prepared to prove how your business model will help your company become profitable. Highlight financial and market issues, as these are key areas for investors. A realistic forecast model is a tool for investors to identify how well you understand your market and your presumptive success. The more up-to-date you keep your projections, the better you will make informed strategic decisions.
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Be Prepared to Explain Your Cap Table
A capitalization table outlines the equity, debt ownership, and liquidation rankings of various investors in a company. Investors want to ensure their best interests are aligned with founders and there is adequate equity to bring in investors at later rounds. You can work with an investment broker in India to provide investors with research insights, reliable investment plans, and market needs.
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Justify the Use of Funds
Investors would want to know how your company intends to use those funds. Will you allocate their funds to capital expenses? Legal and accounting fees? Global expansion? Establishing capital efficacy can help your business develop insightful knowledge and eventually make you more attractive to investors. Be ready to explain to investors what milestone you’re aiming for and the expected results.
Investors already think about risks whenever they invest. Remember to explain an exit opportunity to provide them with a reward for their risky move. Kapso, being a leading valuation firm in India is assisting firms with the acquisition and fundraising processes by offering a unique viewpoint, blend of expertise, and perseverance to clients’ needs.
We have been working with a diverse clientele and rendering a wide range of services. Count on us for all your acquisition and fundraising requirements.
