Positioning your tech startup business idea for funding opportunities

Have you considered why almost all the great tech businesses we know and hear about today ranging from Facebook, to Google, Yelp, Stripe, Flutterwave, Applle, Amazon, Jumia, Paystack, Doordash, WhatsApp and Uber to mention a few all sought out funding and still seek out funding? The reason is not farfetched as the right funding is great leverage especially when you have clearly earmarked what to do with same in pursuit of that great enterprise.

Moreover, your business funding process requires some documents inclusive of a pitch deck (an abridged business plan version), and an expenses sheet among other necessities. Your business needs to focus her pitch and value proposition on what every other business is not doing.

Your plan is very important and it tells potential fund providers a lot about what you really want to do with the money and why it is important at this time in your business. You need to be able to actually demonstrate to investors how your business solution will work once it is developed.

This is pertinent to having potential investors willing to part with their money for such new realities. How well are you able to tell your startup company story if given ten minutes, even better still three minutes?

Beginning with the end in mind is definitely a great way to engage as this ensures clarity and speed of delivery as you drive with purpose to grow that venture into a big oak, sustaining several families and even nations, an important contribution Nigeria needs at such a time as this.

Moreover, one smart way to create new wealth and, by extension, money is to start a company or invest in opportunities especially businesses, just like the farmer is only wise to plant a seed where a harvest is desired. It goes without end to know that tech startups offer some of the greatest multipliers of all times. As a tech startup, you can position your business to attract funding opportunities.

One quote that readily comes to mind when such journeys are to be embarked on is to start with what you have. The more value you can create or execute on your own before seeking out investors, the better for your tech startup. Yes, start with you, but always proceed from you to we, because teams win trophies, while individuals win medals, according to a favorite leadership quote. A corollary for this is how well you can help investors (new partners) feel like it’s really not a problem to take a chance on you and your startup company.

You may want to get help from an incubator or accelerator. Business incubators basically nurture and grow your business while accelerators fast-track same for swifter scale. These are usually a great repository of business know-edge that you can tap into for experience and practical business startup and scale-up tips. Yes, a business idea is good, but an incubation place helps to make your business startup marketable and customer- ready as you go through the business development know- how they offer. Some examples you may want to consider are: CcHub, Wennovation Hub, Spark, Leadpath, 440.ng, GoDo Hub and Startpreneurs to mention but a few. Going through some of their program opens you up to realities that ensure you have a good foundation for that skyscraper you passionately want to build. Getting requisite knowledge is a critical to success factor as most businesses fail because the drivers don’t know what to do next.

Most of the time, the subject of funding usually lies within a mix of debt (leverage) or equity funding, and oftentimes these two extremes offer a startup over twenty different avenues to raise money for your business as identified by the World Economic Forum. Here are some of the sources you may want to consider for your business funding: Small business loans (by Commercial Banks, Cooperatives, Association and MFBs among others), Business incubators and accelerators (they build you and connect you with funders as a lot of funders approach them for bankable business startups), Bank overdrafts (talk to your customer relationship manager about an O.D. today), Business grants (like Funds4NGOs or use Google to search for grants), Crowdfunding (where you can pool funds from a community of people online or offline like via a WhatsApp or Facebook group), Angel Investors (they provide knowledge, experience and funding like WBAF – World Business Angels Investment Forum), Invoice discounting or financing (a lot of commercial Banks and MFBs do this), Venture Capital (these often have deep pockets of funds that they have raised from even bigger funders), Asset based lending (where a collateral is required for a loan such as a property, gold jewelries, etc), Hire purchase (or rent to own is another great avenue where you get the full value upfront and pay up over time. Approach those selling such assets like cars, properties that you may need for your business and negotiate for this) and Cash or Salary Advance among several others.

The important part of the equation is being very clear about what you want to do with the money. Good investment can take you to planet Pluto and beyond, but you have to first show that you were going there on your own. A very well respected mentor once said, think about how your business will be when it has been finished and fully operational and write it out with as much details as possibly imaginable before starting it out. Now, that felt to me like a lovely car (machine) built with aesthetics and functionality that is fully finished and ready to start and drive. Do you have a written description of how your tech business idea will look in vivid details when it is completed? If not, now is the best time to start with planning out that great oak.

Please visit the Corporate Affairs Commission (CAC) website or get the services of a legal practitioner to work on the registration of your business idea into a legal entity. Yes you want to give your business a serious face for would-be investors to know that you are consciously towing the path of all great enterprises.

In conclusion, I will like you to consider these questions:

Does my business need funding at this time? What type of funding does my business really require? Is the idea capable of generating good revenue? What funding source should I use to give maximum leverage to my business at this time? How will the startup get the money back on time? And Why should I consider funding? Yes funding gives you great leverage that collapses time for you, as cashflow is the lifeblood of every business, but the wrong one can also badly affect your business health. However, getting to cashflow requires a system and structure that needs funds, What is your business model? Does the startup have a great team or can it create one to drive their plan? Who is in your network right now? Do you have a mentor or can you get one? Do you know someone who can get your business in front of the investors you’re interested in? Can you show how much their investment will be worth in one or two years? Getting to the customer and meeting their needs  and requirements is paramount for your tech startup, and a good plan backed with the right funds create this reality.

Please feel free to get some help or business coach with your tech startup. I am signing out for now, yours in tech, Olufemi Ariyo.