A lot of people now know about Crowdfunding but most don’t know that Crowdfunding is a time-consuming process, and there are few things worse than spending your precious time on activities that are at best ineffective, and at worst actively putting investors off the idea of funding your company. So after many years in helping business owners to crowdfund, I really wanted to share some tip and highlight what the most common mistakes are that entrepreneurs make when looking to raise money for their businesses?
Not knowing your numbers
There are so many questions you have to answer when trying to convince someone to invest in your business and here are just a few:
What’s your knowledge about this sector?
What's your run rate?
What's your burn rate?
When do you break even?
How did you arrive at your valuation?
These are all perfectly valid questions from an investor, and it's surprising how few entrepreneurs can answer them.
If you're not naturally numerate, learn the key highlights about your financials from memory. The questions listed above should be presented in an executive summary anyway, and even the most financially illiterate entrepreneur can memorise a one-page document.
Click here to download our Free templates.
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