Raising business funding is undoubtedly an important phase in any business. Whether looking for funds to start a new venture or to expand a growing one, this is an endeavour worth the preparations and challenges. Unfortunately, many business owners fail in this especially in their first few tries and most of the time, it’s not because the business isn’t doing well or that it doesn’t look promising. Here are tips to help you achieve success in this critical task.

1. Manage expectations. As much as you like to impress investors, don’t fall into the trap of overestimating possible profit. True, you probably earned a lot recently and you want to use this to attract investors, but there are factors that could easily ruin these numbers. Enlist the help of an accountant or a good bookkeeper Melbourne to help you come up with a sensible amount. You do not want to set something up so high and disappoint investors when you fail to keep it up. Be realistic, set allowance for unforeseen circumstances and consider all factors that could affect sales.

2. Talk to the right people. The first rule is to make sure that you are dealing with people who could actually make the funding decision. A common frustration among business owners is spending so much time on wooing people who in the end don’t even have the vote. Second is to do your research about them. Find out everything that can help you tailor your presentation to meet the investor’s expectations. Lastly, remember to keep your presentation clear and simple. Most investors simply want to find out how your business can provide solutions or respond to a demand.

3. Get help in legal matters. It’s easy to get lost in the excitement of landing a business funding and miss out on the fact that the terms are not as favourable as you thought. This happens particularly when business relationship turns sour. Avoid this by working with your accountant or your bookkeeper Melbourne in examining every detail with care. Be thorough and if possible, have an attorney review the contract before signing up.