Ready to start raising money? It can be tempting for business owners to hit the pavement looking for investors or lenders early on — especially when you read about small startups like the virtual reality system, Oculus Rift, and ride-sharing app Lyft securing unicorn status (a.k.a. worth over $1 billion!) so early in their existence.
But, there are some benefits to being a little more strategic when it comes to timing. Once you’ve evaluated your business’ financial needs, it’s time to put a plan in motion to get the capital you need at the right moment to turn your dreams into reality. In this chapter of our series, we’ll help you start thinking about when the right time is for you to raise capital and how to discuss your business and business financial needs with potential investors and lenders.
1. How to raise money: How do you know when you’re in a good position to negotiate with investors or lenders?
2. How lenders evaluate your business: From your business’ real time cash flow to whether or not you have an MBA hanging in your office, have you ever wondered what business lenders actually look for when assessing your creditworthiness?
Now that you have a sense of how to start raising money, you have some important decisions to make about where that comes from. Check out the next chapter in our series on equity funding, to learn more.