When you have a professional business start-up project, the issue of financing is essential. Selling, credit/loan, investors, family, friends… Financing a business project is not done lightly. You are told everything you need to know about professional project financing.
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- Preparing your project present your plan
- What to avoid against investors
- Financing applications
- Understanding your investors
Plan de l'article
Prepare your project present its plan
In order to obtain all its chances of financing, a professional business start-up project must be clear, accurate and lined . So you must have thought of your professional project in all its seams. Thus, you are able to answer all the questions of your investors.
Indeed, before giving the go-ahead for professional project financing, investors are awaiting several information that will determine their endorsement on financing . Three elements are systematically combed with fine comb:
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- Who is behind the project and its concept?
- The concept and the idea in itself;
- When will a return on investment be possible?
These three questions must have prepared and clear answers.
What to Avoid Against Investors
Many business start-up projects are not emerging due to flaws in the presentation plan:
- The team is viable, but the project does not stand up;
- The concept seems viable, but the team is wobbly and does not seem able to bring the project to its maximum growth
- ; The team is good, the concept is good, but it is impossible to answer the question about a potential return on investment (when and how).
Your project must therefore be supported by a real battle plan, so as not to be dethrone by chilling investors. Your Business Plan must be perfect: forecasting, cash flow, an estimated, costed and dated ROI, as well as a demonstration of a serious analysis of the relevant market . You need to prove to potential investors that you know exactly what you’re talking about.
How to apply for funding? First of all, it is necessary to be very precise . To do so, estimates must be anticipated and must be available upon request:
- Project yourself without exaggerating your numbers;
- Be realistic on your file
- Prepare arguments based on supply and demand;
- Apply for a credible loan amount to be obtained in one go;
- Anticipate the intake that you can make yourself;
- Consider the worst scenario, rather than the opposite.
Applications for financing for a professional project and business creation, if realistic and serious, can only direct you to serious investors . It’s up to you to choose them!
By preparing your business plan well, you will get the necessary aid from a bank (loan /credit), friends, family and investors of your choice. Your activity can then start with serenity : one spine less in the foot.
Understanding your investors
To be sure you don’t commit odd against your potentials investors, it is essential to know how to put you in their place. This is a relational strategy that will open doors for you all your life. When we know exactly what answers and attitude are expected from us, we are more able to respond to what is asked of us.
Thus, the project must appear as winning for all parties involved in the professional project in the short, medium or long term. Work on your concept and demonstrate to your interlocutors that their money will be spent in a logical and useful way . This is a real fundraising that must bring your professional project to its growth and success. Do not skimp on your pitch, supporting numbers, while remaining realistic and humble.
Good courage for your professional business creation project!