Kody Wirth is a content writer and SEO specialist for Palo Alto Software—the creator's of Bplans and LivePlan. He has 3+ years experience covering small business topics and runs a part-time content writing service in his spare time.
3 min. read
Updated January 4, 2024
Most healthy businesses will need funding or financing at some point. Whether it’s to cover startup costs, help with major equipment purchases, or fuel growth with additional capital—it’s a common and often necessary step.
The reality is that, like so many things in business, your path to funding fully depends on the state of your business. Age, position, performance, market opportunities, your team, etc., will inform your funding search and how you’ll prepare to get it.
While your funding journey will be unique to you, there are some key steps that you should take to prepare for whatever funding option you choose.
You need to ask yourself one simple question. “Am I ready to take on funding?” To answer that question you need to consider why you need funding, how you’ll manage it, and what you’ll do without it.
Lenders and investors will want to know how much funding you’re asking for. You need to be sure that the number you land on is not too little, not too much, and that it aligns with your current strategy.
There are numerous funding and financing options available to small businesses and entrepreneurs. You need to carefully consider what funding method serves your business best and what it will take to get it.
You need a business plan to get funding. Most lenders will require it and investors will want to see your plan in order to quickly assess the state of your business.
There will come a time when you need to convince someone to fund your business. To do so, you need to have a tight elevator pitch and a captivating pitch deck to back it up.
Luckily, we have plenty of resources to help you create everything you need.
While the steps outlined above are applicable to nonprofit organizations, there are unique considerations you’ll need to account for to successfully raise funds.
Following the five steps we laid out, unfortunately, doesn’t guarantee that you’ll get funding. There are just too many variables that can swing your chances in a positive or negative direction.
However, we do have some additional tips and resources that may help improve your chances.
Learn how to make your business stand out and be more attractive to investors with these funding tips from seasoned entrepreneur and angel investor Tim Berry.
It’s just as valuable to know what not to do when pursuing funding. Be sure to avoid these common mistakes based on actual real-world insights from successful business owners.
Free resources to help you complete the steps required to prepare your business for funding.
Investor pitch deck template
Impress investors and loan officers alike with visuals to back up your elevator pitch.
Maximize your chances of securing funding with LivePlan
Create and share your investor-ready plan, pitch, and financial forecasts with a single powerful tool.