1. 4 Fundraising Tips For
Your Small Business
C R E A T E D B Y J A K E C R O M A N

2. Starting your small business can be an adventurous and
opportunistic time in your career. However, it can also be
quite a challenge if you haven’t handled large sums of money
before.

3. One way to build your business capital is through fundraising
opportunities. However, finding stable investors with the
revenue to commit takes time and resources. To ensure that
you can gain as much fundraising capital as possible, you’ll
need to avoid some of the common pitfalls.

4. 01
Know Your
Fundraising
Needs
First thing’s first; you should know how
much fundraising capital you will need
to raise. Make a list of necessary
operating costs like employee salaries,
web hosting, supplies, and product
designs. A thorough business plan
allows investors to understand that
you’ve thoughtfully identified the risks
and critically researched the steps
required to break even and generate
revenue.

5. Focus on milestones and
results when presenting
your business plan to
investors. Talk about
what the money will
accomplish rather than
merely operation costs or
how long the desired
capital will last.
Best
Advice:

6. 02
Know Your
Company’s
Valuation
Your company’s value is essential
for determining the cost of new
capital while you seek equity
additions to your current capital
plan. Business owners need to
understand concepts of discounted
cash flow and market multiples
before negotiating value.

7. By using multiple rational
valuation methodologies, you
can average multiple
methods, after eliminating
outliers, to find a final pre-
money valuation. If investors
offer a term sheet with a
higher valuation, you can
either take the risk or pass on
the deal.
Best
Advice:

8. 03
Create An
Effective
Fundraising
Team
Fundraising strategy requires an expert
team. Recruit team members with
standout skills and utilize them in specific
roles. Positions that are vital to the
fundraising team include:
1. Engagement and press officers
2. Marketing and networking gurus
3. Brand ambassadors
4. Negotiators

9. Best
Advice:
Recruit team members who
already have investor
networks. Hire people who
are great at building
relationships. The best
entrepreneur and investor
relationships are friendships
bound by shared values and
passions.

10. 04
Determine
Your
Fundraising
Audience
Attracting target fundraising
audiences is key to successful
investments. It’s important to
match your product’s target
audience with similar
investors. Determine what
your desired audience(s) want
from your product.

11. Best
Advice:
Know your audience. When
engaging with investors, you
don’t have to simply ask donors
to write you a check. Instead,
you can ask them to pledge
support in small amounts over a
period of time. Also, consider
asking investors to provide a
“matching gift” which allows you
to take initiative.

12. Like most new entrepreneurs, there will be hurdles to
face as you learn the ropes. However, pursuing your
passion as a career can be worth it in the end.

13. The right amount of training, focus, and preparation can
help you effectively raise the capital needed for your
business venture while building sustainable, long-lasting
relationships.

14. Thanks for
viewing!
For more tips, please visit
www.JakeCroman.co