one of The most difficult part of getting a business off the ground is finding the funding to do so. There are many ways to fund a business, including crowdsourcing, family and friends, investors, and bootstrapping, each with their own pros and cons, advantages and challenges, and every business is likely to follow the same funding path. means low.
However, there are many similar difficulties you can face when trying to raise capital for your business, and have been experienced by other experienced entrepreneurs as well. Eight business leaders from the Rolling Stone Culture Council share their stories and advice on common fundraising challenges and how to avoid or overcome the same obstacles they’ve faced. Consider what advice you should give to others.
prove business potential
What I struggled with was proving the viability of the business to skeptical investors. To overcome this, focus on building robust prototypes and gathering compelling data to demonstrate market demand. I would advise others to prioritize clearly communicating their vision and evidence of traction. This approach will help alleviate doubts and demonstrate the growth potential of your business. – Billy Carson, 4biddenknowledge Inc.
Building relationships with potential investors
Your supporters will make decisions based on their belief in you as a person as much, if not more, than their belief in your business model. In other words, a decent business model from an acquaintance tends to beat out a great idea from a stranger. So are you talking to people who know you? Are you building relationships that allow them to get to know you better? At the beginning of the startup phase, you is business. – Jed Brewer, Good Loud Media
Align with others on your vision of success
When making your pitch, consider your true match (or lack thereof) with potential investors. If they have his 100 arrows in their quiver (classic venture capital strategy) and you only have his 1 arrow, what is the outcome of “success”? There may be disagreement with investors as to whether the Be thoughtful and only accept funding from investors who truly share your vision of a successful future. – Dan Giuliani, Bolt Athletics
The Rolling Stone Culture Council is an invitation-only community for influencers, innovators, and creators. Are you eligible?
receive negative feedback
Not everyone will like your pitch, and that’s okay. Receiving feedback from the biggest naysayers in the room is beneficial to improving your story. This gives you the tools to address similar meetings and concerns and shift the conversation from defending your proposal to discussing how much to invest. – Michael Klein, Cannabis MD
building trust
The most important step in raising capital is building confidence in your business, and I overcame this with sheer belief in what we were offering. You also have to accept that mistakes will be made along the way, but as long as you maintain integrity to your brand and know you’re on the right track, understand that the right investors and customers will be out there for you. It is also necessary. – Cynthia Johnson, Belle + Ivy
Survive high interest rates
One of the challenges is high interest rates. Most real estate loans are debt-heavy and have very little equity. Some development loans will need to be renegotiated in the coming years. Currently, revenues from commercial real estate are decreasing due to factors such as working from home and AI. That’s going to be very difficult unless the debt is renegotiated or interest rates come down. – Zayn Jafar, Zayn Jaffer Foundation
Spending too much time writing your pitch
Overthinking, perfectionism, and fear of failing or looking stupid can drive people to pitch deck obsession. It’s better to go out and talk to investors, bankers, founders, etc. and get feedback. Quantity over quality. Get the word out and get as much feedback as possible. Capital follows. – Sarah Davanzo, Pierre Fabre
understand your worth
Know your worth! We always have options and often end up selling ourselves short. Whether your business is new, expanding, or pivoting, know the value you bring. Since you are new to finance and income statements, you may need to be creative with your approach. If you can’t raise funds through traditional means, consider a partnership. – Adrianne Fekete, I Am Unbreakable™ Global Media