Today, starting up is the most in thing. Everyone wants to start something and wanted to be known as “Entrepreneur”. Â Thus, getting funding at the right time is of paramount importance. So, if you are planning a funding round for your startup wait for the correct time when your startup is fully prepared to get the funding.
Now the question arises -Â Is there a perfect time to get your startup funded ?Â In order to have a right funding ( right valuation), there are lot of factors that an entrepreneur should consider before putting forth the funding process. Initially passion and dedication of the entrepreneur attracts investors .Â Your spirit of work and determination will bring greater opportunities and good times where you can easily draw a heavy cheque of funding from your investors. So if you are dealing your start up on a part time basis then the first great thing required by you is to show commitment towards it. You should leave your job immediately as if you are not committed towards your work why someone else should be by investing his savings into your account. You can’t continue to be in job and wait for your venture to get funded, thats so awful, seriously…………………… If you are not willing to risk , why the investors would want to put their money on your venture ? But again back to the topic, Whatâ€™s the right Â time for getting funding?Â In order to have that correct time you should be ready with your business plan. A business plan should be such that will accommodate all the information about your venture starting from the business model of your start up, targeted audience, market size, revenue generation method, expenses. It is seen that at lot of times funding is received on an idea shared by entrepreneurs to investors. There is no product that is developed at that moment and no marketing strategies are decided. At this particular point it becomes very difficult to judge whether the startup will succeed or fail. There is no reality check and no proper costing of things is done which will lead both the entrepreneur and the investor at risk. Hence the right time is when a proper revenue generation scheme is made and all the budgeting is calculated. This will bring 5 times more funding than the funding you are getting without having a plan. Basically, a prototype is ready, and you can showcase that the model would work and can really be scaled. Groupon having a proper planned stream of revenue generation is the sole reason to be able to attract lot of Venture Capital investors. The designing of its products too are such that it will attract a lot of revenue from its customers. Right time comes with right team – Do you have the team to take your venture to the sky height ? Though too much hiring is not advisable for start up to gain success, it is advisable that the start up should have a proper team of people who have expertise and skills that are required to run the proper business. Startups needs go getter team to start with.Â An investor while giving funding to the start-up has a proper eye on the team size as well as skills of the team members so it is necessary to have proper team while you ask for funding. Itâ€™s good to have right rapport with your prospective investorsÂ Often a referral should be there who can help you out to build friendship with the investor. You should know about the working model as well as investment pattern of your investor. As different investors invest differently its beneficial if you start knowing the investor over a friendship and can know his/her method and interest in investments. Have Content marketing strategy well in advance Content is one of the greatest ways to generate business these days. Having an online presence with content not only provides credibility but also gives a platform where the entrepreneur can act as an addressee about his business. Content like white papers, testimonials, press releases, blog posts, social media connect which help out to receive a proper funding. It is also advisable to have a media presence on time before you getting funded.