Advice for start-ups with no capital who need funding.
In order for a funder to understand your business idea and be sold on wanting to invest their money into your business, you firstly need a solid business plan.
A business plan is usually a projection of your business over a 3 to 5-year period and has cash flows and assumptions backing up your sales.
Pitching your business idea
Your business plan will form part of your pitch document when seeking funding. Your audience such as enture Capital firms, Private Debt funders and Crowd funders will want to know all the number. They will expect you to know your business idea inside and out so be prepared.
The funder will be looking for a return over say 12 months so you will need to demonstrate strong cash flows (the business’s ability to make money) and/ or be able to offer them a slice of your business in return for your start up $$$.
If you don’t think the business is at that stage, you could also ask family or a mentor for assistance. It will usually cost you less in terms of funding cost and/or ownership of the business.
Of course, if you have collateral/ something of value to put up such as real estate, the cheapest form of finance is through a Bank. Whilst you may not have the real estate yourself, you may be able to get assistance from parents or wider family so not to dilute your ownership of the business.
Asking on a community forum for examples of business plans for your industry is a great starting point if you are going to present to a funder.