Securing funding is probably the most important step entrepreneurs take in their quest to build a successful and lasting organisation. However, most people don’t know how to create a funding strategy, and they don’t make an effort to learn how to.
Fund raising is daunting, learning about it seems even more complicated! Finances, financial models and numbers can be confusing for most entrepreneurs! There are many programmes about specific funding methods, but most of them lack a holistic view of funding. Most people who are seeking funds don’t have a clear overview of the many options available to them and often don’t align the needs of the capital available and their own needs. As a result they face unnecessary rejections, they can damage their image by being unprepared for the investors, which makes them feel inadequate, and at times, dumb.
Having experienced fund raising and investing, I created this series of articles to help entrepreneurs craft an effective funding strategy in a systematic way that is enjoyable, empowering and successful.
A funding strategy can be defined as a systematic approach to gathering the resources needed to create and grow an organisation. Once you have a funding strategy:
- You are better prepared to get the resources needed to reach your goals.
- The probability of receiving funds increases.
- The possibility of unnecessary dilution of ownership decreases.
- Your profitability and or impact increases, and
- The process itself is more enjoyable and less stressful.
The report is intended to help those working on a start-up, those growing a company or a non-profit, those establishing a project within an organisation, organising a group for a cause, and even consulting to others about their fund raising strategy.
- In the case of for-profit organisations, the capital invested needs to be paid back with extra benefits (interest, dividends, or capital appreciation.)
- In the case of non-profit organisations, capital invested or donated must generate a tangible benefit for the community.
- In the case of a project, there needs to be a clear benefit to the organisation.
Before we continue, there is one thing you need to know. This will be presented in part two…