Clients often need our help when seeking seed capital. 92% of aspiring entrepreneurs report fund raising to start the business as challenging and 65% of those 92% cited fund raising as “very challenging.” While this Unit’s focus is on raising capital, it is important to see the entire picture so that we can better understand the challenges that entrepreneurs face. 📖 Read the 2020 Trends in Entrepreneurship Report Overview, paying particular attention to the Startup Funding portion. The report discusses disparities in venture capital funding and representation. 💡 How can we promote more funding for women and people of color?
When meeting with your client, it’s helpful to develop a capital acquisition strategy:
- How much money is needed?
- When does the business need it?
- From what sources?
- What is the client willing to give up?
Having an outline of the entrepreneur’s goals and what it will take to achieve those goals, incrementally, will give you the information needed to advise on best ways to raise the capital. I’ve often found that clients understate their needs and usually recommend trying for more than they’ve asked for.
Some clients may not know how to figure out all of their needs. I refer them to the U.S. Small Business Administration’s (SBA) site here. As one who will support and counsel the entrepreneur, you need to be familiar with what is on the SBA site as well. 💡 Can you think of other costs not listed?