Innovation is a process that requires a lot of dedication, planning and resources such as time and money. One of the main items that entrepreneurs seek when innovating is precisely capital to create, grow or expand their companies.

What we're going to talk about in this post is how to prepare yourself to face this exhausting stage that everyone invariably goes through: seeking financial support. But before you think about raising money on the market (or from banks), are you ready?

The fundraising process is exhausting and will consume a lot of your time, both inside and outside the company.

After organizing your financial projection, you will still have to make presentations, hold meetings, conduct business plans and spend many months deciding on the best option for your business. Without a doubt, with lean teams, any dedicated person is also needed in the day-to-day commercial or management of your business.

Therefore, the first question we ask is: is it the right time?

It is worth noting that it is advisable to find out how far your company can go without external resources. If the idea or product is not yet very solid, it is better to wait and continue on your own. If you go to market, the value achieved may be low or the negotiation will be negative for your pocket.

Many people want to stay small or grow organically, and that's great too. In other words, respect your will and your pace. Seeking money without having a focus, a clear market, planned costs, goals and ROI of the business is a real shot in the foot.

What will be the value of money?

Yes, the value of money, you read that right. This is because when you raise capital, you may certainly need to dilute your stake in the company or put your family in debt and put your assets at risk.

Just as you plan to buy a property, studying the best strategy for finding resources is essential, as is the best way to protect yourself in case something doesn't go as planned. And we'll help you in the next posts, count on us.

But for now, understand your stage as a company and learn about the different sources of capital. As a tip, talk to other entrepreneurs and understand what they got right and what they got wrong when seeking the same thing you are looking for now, all before you officially raise money.

Ok, what features should I anticipate?

This seems like a simple point, but many people forget it. If you are going to seek money, remember that there will be an investor on the other side, who could be a friend, a bank or an investment fund. You need to prove why, how and where the money will be invested.

And, of course, the expected return on investment. Will there be a new sales team, marketing, media or even working capital? Demonstrate everything clearly and put your energy into it. At this stage, when consolidating the information, you need to prove that the money invested in your idea or innovation will be a success.

And what value will I need to look for?

Before you go looking for an option, learn to create and predict scenarios. From optimistic to pessimistic. How much would you grow, even without resources?

When an investor comes in, for example, he or she will want to participate in the revenue, so be prepared to improve your performance and, with that, speed things up significantly. Estimate, align and validate these scenarios with whoever is going to enter the business.

And would you receive it all at once?

It is a delicate item to predict, since each way of raising funds has its own particularity and, of course, each accelerated idea or product is unique.

You will need to understand everything about the option you choose and plan how and when to spend the money. The speed of this will be your responsibility. Will spending faster attract more customers?

When does the return on this initial cost begin? How long can your cash flow support investment contributions without return? These are questions that need to be defined and help define the flow of money.

With your financial planning and organization, it will be easier to follow the path to success in raising funds.

Keep the data and information in mind and study hard, because they will certainly test your knowledge. In one of the next materials, we will discuss the types of resource options that your initiative can seek.

Keep the data and information in mind and study hard, because they will certainly test your knowledge. In one of the next materials, we will discuss the types of resource options that your initiative can seek.

We, at 4C Innovation, are a company focused on implementing the innovation process, executing the project and supporting the search for funding resources. Check out our model that takes entrepreneurs on this journey of innovation, guiding them through important issues such as the market, technology and the finances of their project. With this, the product project begins with fundamental information for success, making your dream come true!

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