What are the reasons for entrepreneurs' financing failure?Summarize the following six factors.
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For entrepreneurs, the process of fundraising is essentially the process of promoting your company, your products and your dreams.For this process of enterprise financing, there are some successes and some failures. There are many reasons for success, but the reasons for financing failure are not as follows:
1. The purpose and goal are not clear.
The first question that entrepreneurs cannot answer - "How much capital do you need and how much do you value your company?".At this time, entrepreneurs need evidence to support their financing requests.I have raised this question to entrepreneurs many times at angel investment conferences, and they are usually at a loss.
2. Do not understand the financing process and rules.
The key is to create a win-win situation with investors. You should be honest about the risks and returns of investment. Don't play tricks or take shortcuts, persuade investors to believe you, and avoid legal disputes with shareholders in the future.
3. Rely on unreliable business personnel.
Hiring people worthy of reuse is the key to success.Attracting well-known consultants, lawyers and accountants to join the team will help potential investors better understand entrepreneurs' ideas and improve their integrity.
4. Inappropriate source of funds.
If investors think that the entrepreneur's project is inconsistent with his investment ability, even if he is interested in the entrepreneur's ideas, it will not help.If entrepreneurs need to raise less than $1 million, they don't have to waste time looking for venture investors.In addition, professional investors should not be expected to inject capital when their own interests are not closely related to start-ups at the initial stage of entrepreneurship.
5. No due diligence was conducted on the source of funds.
While investors conduct due diligence on entrepreneurs, entrepreneurs should also conduct due diligence on potential investors, including checking their recent investment projects, investment periods, investment expectation records and progress.There is no need to be surprised or disappointed.
6. No preparation for the future.
If the investor is satisfied with the elevator introduction or preliminary introduction of the entrepreneur, he will ask the entrepreneur to submit a formal business plan and financial forecast.If entrepreneurs fail to provide these materials as soon as possible, not only will investors lose enthusiasm, but also will damage the professional image of entrepreneurs.Similarly, entrepreneurs should also make preparations in advance when setting up companies, selecting business backbones and setting up relevant facilities.
With years of experience in the investment and financing industry, we provide entrepreneurial financing guidance and business plan writing services.The investment and financing market is a mixture of good and bad people. I have compiled an outline of the investment and financing market routines so that you can understand the inside story of the investment and financing market in five minutes. Bosses in need can communicate at any time, hoping to help you avoid risks and avoid detours.
Provide entrepreneurial financing guidance and write business plans. WeChat: czbw88
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