Last Updated: February 14, 2022

Creating a Fundraising Plan

Fundraising is something every business owner has experienced. Though fundraising is thought to only apply to start-up companies, there are different rounds of fundraising throughout a business life cycle. Writing a fundraising plan before jumping into the action of fundraising helps to make efforts more effective.

What makes a fundraising plan successful?

Understanding Your Value and Set Goals According:

Understanding the current value of your company is the first step to setting a goal for fundraising. To do so you must take into account the risk and reward of your company. Company valuation increases as the level of risk decreases. The level of risk can decrease because the company grows therefore the risk is spread out or because there are increased profit and traction beginning.

After calculating the value of your company, you can set a fundraising goal. Generally, this is broken into yearly goals for now and the future 4 years. Future fundraising goals should be revisited every year. Set your company’s fundraising goal based on what is needed to achieve business development and growth for that year.

Reduce Any Risk Before Fundraising:

One of the first things potential investors look at is the risks associated with a company. To increase your chance of getting investors or more funds is to lower the associated risk with the company as much as possible. One example of this would be to have an established person from the industry document who reviewed parts of your company and their thoughts. This may not take away all risk but mitigate it so a manageable level.

Know Your Audience and Tactics:

Different audiences have different perspectives and priorities. For example, a technology investor cares more about the technology working than the benefits to the earth whereas a conservation investor will care more about how your product affects the world. This being said, not all tactics will be effective for every campaign. Each fundraising campaign should have its tactics as it is focused on different audiences.

Conclusion:

It is important to have a well-thought-out fundraising plan full of specific details. Fundraising is not only for start-ups. Any business can need a fundraising plan throughout its business lifecycle whether it is launching a new product, just starting out, or expanding internationally.

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