How to Prepare for a Fund Raise (Pre-Revenue)?
Your Game Plan
In considering a fundraiser, think about your ultimate goal with the business.
Below are some important things to think about:
1. Are you building a business that will be your lifestyle business for the next 20 years?
2. Are you building a business that you plan to sell for a sizable gain in the future?
3. What’s the exit plan for your business?
4. Where do you see the business ending up in the future?
5. What’s the timeline for the business?
6. If you know the exit plan of your business and how long it will take, then funding the business becomes much easier to sort out.
7. If you plan to keep the business as a cash flow machine for yourself, then revenue-based funding may be the way to fund it.
8. If you plan to sell the business for a nice return, then equity funding will be a good option.