No matter whether you are a startup company or a five year old business, the need for fund raising is realized by all. But, what type of fund raising is good for you, what are the factors worth considering prior to fund raising- all these and similar questions must be addressed before beginning with the venture.
Once you have found your answers, you are all set to look for opportunities to raise funds. Below mentioned are a few tips that can help avoid wasting of time and efforts during the process.
Set your expectations
Starting with fund raising, it is crucial to comprehend that the process demands time, in fact plenty of time, along with a well-planned strategy. Reason being, there are multitude of organizations competing for funds. Additionally, the grind of capital raising each year leads to internal motivation and image problem, particularly when the organization is unable to achieve sustainability after some years.
Make certain to set highly focused, long-term goals, similar to your strategy.
Elaborate your value proposition
Donors are interested in knowing whether or not the money they offer will be used for processes other than just incremental changes. The higher the amount of funds you are seeking, bigger should be the impact you have on the donors. Represent yourself as more than flowery vision and build a transformation statement.
Clearly explain how your organization would make a positive difference to the world.
Know your Internal Rate of Return (IRR)
An effective selling tool to build is clearly knowing your internal rate of return. The IRR provides a picture of how donor’s money would help an organization to move forward, towards sustainability. This is usually beneficial for large donors who are interested in knowing whether their money will help a company to turn into a long-term sustainable organization, so that it would not realize the need for funds in future, or it will only proffer short term benefit.
Provide training to your team
While opting for fund raising Sydney, it is viable to know that there are diverse roles in its strategy. It is crucial to assign these roles to right individuals within your organization. Know who could successfully play the role of engagers, askers, connectors and stewards in your company.
If you are devoted to raise notable amount of money, consider of looking for professional help. A seasoned and reliable chief financial officer (CFO) can help you in your venture. Owing to his experience, expertise and network, he can take your business to a next level.
Even though hiring a professional for fund raising can be expensive, the positive results they can bring to your fund raising venture are worth the investment.
Know your audience
When the non-profit teams wish to acquire support of large foundations, it is important to understand that majority of these foundations serve as one time donors. Reason being, they aim at increasing their brand recognition, while hoping that their contribution allows your organization to gain desired success.
Thus, whenever you receive support the second time, celebrate the moment. This means that you are successfully accomplishing your goals and are satisfying current donors.
Stick to your strategy
Responsibilities and uncertainties are the common reasons that can divert you from your fund raising strategy. It is easy to drift from your goals and objectives.
To deal with this situation, prioritize your plans and regularly review progress reports to determine if there is anything, changing which can improve the results.
Build creative strategies to leave a positive impact on donors. For example, you can request your donor to create a matching gift to receive which your firm has to raise matching capital within stipulated time. This helps your donors to know how serious you are about raising funds.
Being an entrepreneur, you might be well versed with the challenges involved in raising capital. However, dedicated assistance of a CFO can reduce the efforts required in the same. If you are a small company, opting for services of a part time CFO makes an ideal choice for you. These professionals offer similar services of a full time CFO, but at relatively lower prices. You can equally benefit from services offered by them.
Fund raising is important for any company to grow and expand, so take your decisions carefully.