Funding Request: Do You Need Investors?
The funding request is really where you articulate how much money you're looking for in order to either achieve the goals that you have been promising or accelerate the growth. And depending on the partner that you're looking for, the investor that you're looking for, you would articulate in this section specifically what you're looking to get in a new partnership. What to include in a funding request. You would include the time period that you are requesting it for so the investor knows exactly where the money would be expected or the frequency. How much funding you will be needing based on the goals that you're promising. And the terms which is basically the structure of the agreement that you would like to have apply. Again if it's basically a loan or is in exchange for participation. If you want someone to actually be part of your business as a part of it. Not just lending the money but have also some rights or participation or provide guidance in terms of how to run your business.
Those are different types and structures that you can set up. It has to work for you and it has to be tailored to also the audience that you're selecting as potential investors. So this is gonna be very specific to your business, the stage that you're in, and how much is needed actually based on the vision that you're setting for your goal. So to fill out the funding request, there's a few questions that you can ask yourself. One what is the current funding requirement? Here you would basically include what is the total dollar amount that the investor should be prepared to think about whether they would want to participate or not. What are the future funding requirements? It's possible that you just need some money now and you need some money in the future. You would describe how is it the funding requirement would change between the next one to five years. Because when you're building, when you're looking for a partnership, it could be a long-term partnership as well, not just a one-time investment. How do you intend to use the funds you receive? Is the funding request for example for capital expenditures? Lets say you want to open a bistro. Do you need money just to buy the assets for example to set up the kitchen and the bar? Are those for capital expenses? Or you need access to more resources and money to actually have working capital to operate your business which is different, which this would be the cost of hiring people to provide the service or supplies to make your product. So it all depends on where is it that you need most of the support to continue to grow and recall both the profit and loss statement and the cash flow will give you an indicator of what you need. If you don't have enough to actually operate your business, then working capital might be something that you would be looking on from your investors. If you're looking to expand for example your business, perhaps capital expenditures might be a more likely ask as part of your funding request.