The search for capital resembles something of a home build kit without being provided the tools, directions or an image of the final product for reference. If you are not seeking capital for the right reasons or are not prepared your project will suffer.
Think of capital like a pizza. The process to order a pizza takes you through a series of decisions such as considering the style, cost, and options. Just remind yourself how many times you argued with your group because some preferred cheese or pepperoni only and an odd man out calls for anchovies.
The similarity between ordering a pizza and selecting good capital is that it is an individualized process. There is no one size fits all.
The difference between your pizza and capital is you can always pick off the unwanted pepperoni or anchovies off the pizza. When it comes to, your capital, you will have to deal with each of the terms as they come.
Before You Begin Your Search
Why am I seeking capital?
Am I properly positioned to obtain capital?
How To Obtain Good Capital?
Step 1: Examine your core concept beginning with validating your numbers, making sure
they match, and you can prove it. Verify your idea is scalable long-term.
Ensure your leadership has their affairs in order.
Step 2: Define your need, setting proper expectations and understanding your tolerances.
If you do not know the parameters surrounding your project how can you
align yourself with good capital options?
Step 3: Think about after the funds are secured. Consider by when funds need to be
received. Be clear how you plan to use them. Also, will you need more and how
will you get it?
As a final thought, remember, by the time capital is needed you are already at a disadvantage of receiving good capital. Understand that there is always someone ready to give you money, but at what cost. Good capital comes with defining your purpose, extensive homework, clear parameters, and good judgment.