India is a land of growing opportunities, especially for entrepreneurs hailing from diverse backgrounds! These entrepreneurs and innovators have continued to transform unique ideas into a reality. However, when the question shifts to long-term existence through fund raise and sustainability, things don’t look as bright. Why?
Only 1 out of 10 business owners are able to raise funds for the graduation of their business into the next stage. The stage we’re referring to is the distinction of businesses based on the Micro, Small and Medium Enterprises – a distinction that truly matters.
So, why does only 1 person walk out with a Yes from Investors and not others?
The answer is quite simple: They aren’t prepared for a Fund Raise, nor did they take efforts to make their business fundable.
With that out of the way, we’re sure you want to learn how to avoid falling under the 90% category and walk away with a win. But let’s go step-by-step
What is a Fund Raise?
It is a process that every business has to go through multiple times during its lifetime. Nevertheless, the need to raise funds is beyond the results of having more capital, it is also to draw partners to your business that will contribute to positive change.
You have decided to raise funds, what is the next step for you? How do you prepare for it?
It is difficult to construct a simple answer to this question. Yet we shall try to simplify the process for you:
- Fund raise or Fundraising is a process where you would put up your business as an exhibit. It will be closely evaluated by those you hope to raise funds from viz. Banks, NBFCs, Venture Capitalists, Angel Investors, et. al. This tells them the Health of your business.
- To withstand the critique, you need to groom your business in a way it is easy to understand what or who drives your business, what is your business’s Unique Selling Point (USP), and other such questions.
These are some difficult points to assess by yourself and even more difficult to identify what needs to be changed in your business. Fortunately, MSMEx has crafted a free tool: HealthoMeter that closely critiques your business and identifies your strengths and weaknesses in order to give you a Health Report.
Fundraising is certainly a crucial gateway that can be a matter of survival and growth for your business, we wish you the best of luck and hope the tool helps you bootstrap your endeavors!
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