blog post 14
September 16 2017
3 things you need to have ready before going to an investor 
 
money bridge
Ask any entrepreneur their number one challenge and you'll hear them telling you it's "Money" quite often! “There isn't enough funding available” “it's too difficult for SMEs to get loans” is what you hear them say. But that isn’t really the case. There is actually a lot of money out there, and a lot of good people willing to invest in good ideas, but you need to know how to approach them. The problem isn’t so much that there isn’t any funding available, it's that entrepreneurs don’t know how to get it.

If you walk up to anyone and ask them for AED 500, chances are the first question they are going to ask you is “why” and if you have a compelling enough reason, they might be willing to part with their hard earned money. But if you shrug your shoulders and say “I dunno… I just need AED 500” then they probably won't be interested... unless they are a family member and they do it because they just love you! :-) 

As part of the work that we do, I come across investors on quite often and inevitably, when they find out what I do, and about our entrepreneur training program called Mompreneur Rising, they begin to offload their frustrations about the startups that approach them. Chief among them is this little gem “They come to me asking for my money… and they haven't even done their homework… how can I trust them with quarter of a million dirhams if they can't tell me how they are planning on spending it?” 

So, here are 3 things you need to do in order to have a better chance at securing funding.

1) Have a solid business plan
It doesn't have to be a 500 page detailed analysis (although that isn't such a bad thing) but you need to have some kind of document that shows that you have put significant thought and research into what you are going to sell, who you are going to sell it to, at what price, where you will be making it, how much it will cost, how much you will make, and how much money you need to get this started

2) Know your numbers
You must have your numbers for the first 3-5 years of business down cold - you must know all your costs, all your competitors prices, and how your cash flow will look. 

3) Prepare your Pitch Deck and be ready to present your idea 
It might sound great in your head, and it might look good to you on paper, but if you can't share that with another person and make them see why you think it's a great idea, that's where the project will die - So you must have a great pitch deck that describes in very simple and comprehensible terms why someone should invest in your business.

 
If you prepare these 3 things, you are going to be ahead of most of the entrepreneurs out there looking for funding. And from personal experience, I can tell you that most entrepreneurs prefer to back a solid team or person rather than a solid idea.


Good luck out there.


As part of Mompreneur Rising, we prepare businesses to go out and look for funding, the workshop is designed to make startups pitch-ready. If you want to know more, head on over to mompreneurrising.com
 
As always, I will come live on Facebook on Thursday, September 21st at 11 am GMT (3 pm GST) to talk more about this topic and to answer your questions. Follow me on Facebook and I will see you live soon!
 
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Copyright Mona Tavassoli 2017