Similar to business growth and expansion, when it comes to fundraising, timing is crucial, and getting it wrong may not result in a favorable outcome for the business. So, how do you know when it’s time to begin looking for investors? There is no simple solution, but there are some broad recommendations to follow. In this post, we’ll provide you with five pointers that you can use to figure out the right time to start working on raising funds.
1. The Right Time Of The Year
As per the industry-known business startup consulting services any time is a good time to ask for money. Though, some of the recent studies suggest that if you are looking for venture capital, you should find investors at the beginning of the year. Between January and March, over 32% of all venture capital rounds are paid. In addition, several charity groups have large fundraising events in the spring as well.
2. The Burn Rate
Timing not only matters for securing funding, but also matters for your startup’s burn rate. The burn rate refers to the amount of money your startup is spending each month. The more money you’re burning each month, the harder it will be to find new investors. Ideally, you don’t want your burn rate to be higher than your revenue. While it’s possible to find investors who will fund a high burn rate, it will be a lot harder and take a lot longer. It doesn’t mean that a low burn rate is the only measure of success for your business, as confirmed by various business growth services.
3. Achievements To Show
As stated above, slow burn rate is not an achievement, but there are other achievements that you can show.
Before you start talking to investors, you need to have something to show them. You need some kind of milestone to prove that your idea has potential and that you can bring it to the market. There are a few different types of milestones to choose from, depending on your business. Before starting fundraising, you should already have at least one milestone in your bag.
4. Get Advice From Consultants
While all of the above tips are useful, the best way to know when to raise money for your startup is to ask someone who knows the whole funding process. You can learn a lot by connecting with some success-driven business startup consultants about the various things to take care of. These consultants would have helped countless startups go through the fundraising process. They’ll be able to tell you the good and the bad. They can also offer you some advice on how to approach investors.
For the top business startup consultation service in Alpharetta, Georgia, there is no better selection than EZ Innovation. That has helped hundreds of startups with funding assistance, business growth and expansion services, startup marketing services, and more.
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