When it comes to startup funding, entrepreneurs often times run into a couple roadblocks.
Asking for funding can be very challenging, especially if you’ve never done it before. Dreading the feeling of asking for handouts? Don’t sweat it. Every entrepreneur faces similar issues when it comes to asking for money, and in the video below I discuss some of the common challenges raising money for your startup company and why it’s necessary to keep working through the obstacles.
1. Raising Money From Investors Is Not Easy
- But you’re not alone. Many entrepreneurs tell us that raising money from investors is among the most difficult things that they do when starting and building a company.
- It might be new and uncomfortable for you to start asking for money, especially since it feels like asking for handouts sometimes. And it may feel like a daunting task, especially with the possibility of hearing “No” from investors.
- If you prepare and practice, fundraising will become easier.
- Remember, if it were easy to do, everyone would be out raising money. Keep at it, learn as you go, and get good help along the way.
2. Start Exercising Your “Raising Money” Muscles
- Don’t procrastinate. Keep raising money, even when it gets difficult.
- Learn by doing. Refine your investor pitch and presentation materials as you go.
- Get good at it. After all, you are the founder and you will likely need to raise money more than once in order to get your company started and to keep it going.
3. Don’t be Afraid of Investor Input
- Be open to investor input. It provides a focused and practical perspective.
- You may not always like what you hear, but it could be the most valuable input that you receive.
- You will receive a good cross-check on your company’s progress and which aspects of your business to tweak and adjust.
Keep your financing efforts going—best case, you will raise the money that you need; and worst case, you will receive valuable input about the direction and prospects of your company.
What has been challenging for you during your money raising efforts? Help your fellow entrepreneurs and let us know. We look forward to hearing from you!