By Abbey Fatica
This will be a Multi-Part Series about how to secure funding for your startup and what else can happen in the funding world? I will be discussing my own personal journey and the *MANY* steps it has taken to even get my foot in the door (or even next to the door). The goal of this funding series is to show fellow Women Entrepreneurs the process of getting VC (Venture Capitals) and Angel Investors to provide your start up with the seed capital you need to succeed.
Where to start? Ok so you’re thinking “I’ve got this great idea and I want the world to know about my product/service and USE it.” But where the heck do I start? There are so many options and steps that the world of funding can get quite confusing.
Let’s start with the basics: Before you even start researching investment firms, grants, angel investors, incubators, etc, you have got to get your business plan, financials and executive summary in order.
If you are serious about making your idea into a viable business and want to gain the attention of investors then you have really got to know your stuff.
First, come up with a business plan that outlines the following:
– Company Summary
– Customer Problem
– Your Solution
– Management Team
– Sales/Marketing Strategy
– Competitive Advantage
– Target Market
– Revenue Model
Once you have this business plan in place in FULL DETAIL and I mean get it as detailed as possible then begin to draft your Financial Projections and how you plan to use your funds.
The following are the aspects of a Financial Projection:
– Capital Raised to Date
– Capital Seeking
– Pre-Money Valuation
– Monthly Burn Rate
– Current Monthly Revenue
– Revenue Driver
– Next Four Years of Projections (Revenue, Expenditures, Profit)
– Where and How do you plan on spending their money?
The last piece of the puzzle is a short one/two page Executive Summary. The Summary is just a shortened version of your Business Plan.
This includes the pieces mentioned above and also:
– Potential Strategic Partnerships
– Social Media Links
– Contact Information
Want to see how I have put together our Business Plan, Financials and Executive Summary then feel free to take a look at Gust.com.
The next part of the series will discuss where and what to search for when it comes to your investor options. I will then delve deep into each of the areas and tell you personal stories about each of these arenas.
This series is a means to help you completely break down how to get funding. It’s definitely not an easy process and we don’t want to discourage you from following your dream but securing funding is a full time job. Just remember that the results will just make the journey that much sweeter!
Abbey Fatica balances her time everyday between her husband, three kids and her businesses. Yes, businesses! Ever since she started working from home and being her own boss in 2009, she has started companies like Living Your Moment and TrackerSphere working with brands and bloggers enhancing her clients visibility through social media channels. Her newest venture includes writing a nine part book series called Life Well Blogged, a collection of humorous blog posts. While she is all over on social media, you follow her currently on Twitter @LifeWellBlogged and on Facebook at Life Well Blogged.