Investment readiness is essential for unlocking funding, from any source and whether via online lending platforms or traditional lenders – quickly and effectively. In essence, this means developing a validated business growth plan and robust financials, with key milestones that show clearly how and when loan repayments will be met, or returns achieved for equity investors.
For those thinking about crowd-funding by reward-based giving, there is a different and a similar amount of preparation before going live, to ensure that once public, you get to the top of the page and stay there.
By validated business plan, we mean that the market opportunities you see should be proven as far as possible. How many buyers have you talked to and does what you are selling fit their needs better than your competition? Can you get any letters of intent for a certain volume of orders, a pilot project or some other significant step towards future revenue?
The more you can evidence that that money you seek will definitely help you grow sales and profit, the less risky you are for funders. Proving your market comes before getting the money, so this needs to be the strongest part of your business plan. Accompanying financial projections must be fully detailed and show different optimism levels, so that lenders or investors can see that, should you not quite make the progress in the timescales you forecast, you are still a good investment.