Perfect Funding for the Best Business Initiative

The business model of Start-up is a fundamental element and unfortunately we tend to neglect it when launching its project. We rightly focus on the “big” problem we are solving and the “extraordinary” solution we are building, but we are still mistaken about the question of the model.

However, if a few years ago we could do without (and still) it is today a prerequisite in the project development strategy. More generally, it is necessary to think from the outset how you want to finance the project to build a business. There are two options for this: bootstrapping and fundraising.

In both cases, even if the business model cannot be deployed from the first day, it is necessary to plan in its development to link successive business models (integrating, including opportunity revenues),

It’s called having a business revenue strategy

Even if we raise Businesses Fund, there are very few (and even less so in France) companies that manage to finance themselves solely on a growth in the number of users. And the risk for those who try to do so is to lose sight of the execution of the project to become a machine to be financed.

The Trend

This trend is a bias introduced by the media that celebrate the spectacular fundraising of several hundreds of thousands or even millions fundraising carried out by Startups. But the reality of a fundraiser is much less glamorous. When you lend money, lose your freedom, you change the way you make your decisions. And if this money is taken for the wrong reasons, these decisions can only lead to the failure of the project.

  • It must also be well aware that any money raised or obtained from the outside requires effort. And most of the time this effort is time, loss of focus on execution. It is then spent writing files, preparing presentations, writing a business plan, etc. The advantage of implementing the “business revenue” strategy mentioned above is that we can then project the impact that (and not only in the short term) this loss of focus will have on the execution, and therefore on the CA, to compare it with the amount you want to get. We see immediately if it is relevant or not.

Be careful, the point here is not to say that raising funds is useless. You just have to do it when you’re in a good position. And finally the number of Startups (in boot) that rise under ideal conditions is quite low. This is why it is actually not so difficult to find funding . It is important to understand what each of the typical funders expect and to adapt their business plan in a credible way to convince them. And since it’s often a matter of life and death for society, most entrepreneurs do that. It is exactly then, if a “business revenue” strategy has not been considered, that most entrepreneurs lose their vision and begin to “unscrew”. Rehab Cape Town

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