The Process for Gaining Access to Capital
Most questions related to finance and capital do not have simple answers so you may be asked for more information or redirected to another resource whose expertise is more appropriate to address your needs. The following are the general steps that you will need to follow:
- STEP 1: Get Educated on Finance and Capital
- STEP 2: Create a Solid Business Plan
- STEP 3: Attract the Right Kinds of Funders
- STEP 4: Closing the Deal
The first step is to get educated so that you understand where your company stands at present and thus what kinds of capital it can access. You will learn the difference between the five major forms of capital as well as all the vernacular used throughout the fundraising process.
Next you need to be clear about the intended use of the capital you seek. We have listed nine typical uses of capital. This is not an exhaustive list but it does provide you with an idea of what those with capital are looking for when you inquire about capital.