When you’re looking for project funding for a new business or expansion of your current business, taking time to complete these steps will help ensure that you’re covering all your bases, so you can secure that much needed investment.
You know you’ve got a great idea, but you need to be able to convince investors of that. This starts with research. Look at the potential market. Are there any direct competitors? What sets your business apart? Why would your target customers choose your business instead of others? What’s required for your launch? Are there any supply-chain issues that could cause delays? Do you need government approval for any of your offerings? An example would be a real estate development that requires permits and zoning changes from local governments.
Crunch the Numbers
Anyone willing and able to provide project financing is going to want to see numbers. You’ll need to accurately assess the costs of going into business, any ongoing expenses, and potential revenue sources. These estimates will be critical components not only in deciding how much project financing to request but also in the business plan you’ll present to potential investors.
Use a consistent and common format to present these estimates and don’t be afraid to reference any documentation you found in your research that supports the numbers.
Look at the Requirements
Different project funding firms have different requirements for submitting your investment proposal, so you’ll want to research those and ensure that you have gathered all of the information they require and that you’ve placed it in a format that will fulfill their needs.
In most cases, a standard business plan template will work, but it is important to follow directions well. This is your first impression with a company that could be poised to invest in your business — you don’t want to look like an amateur.