Entrepreneurs should ask these eight questions before raising capital:
- How large is the market for my products or services?
- What competitive advantage will my product or service have versus alternatives?
- How easily can a competitor duplicate what I’m doing?
- What barriers to entry can my company build?
- How much money do I need to raise to reach the next key milestones and to execute my overall strategy?
- Is there a clear path to revenue growth and profitability?
- When do I expect to break-even?
- What is my exit strategy, and how will investors get paid back?
If you like this and want more insights on this topic, download our free guide to Building a Fundable Business Plan. Also, if you’d like to get a complimentary assessment of your business plan or funding presentation, please contact us. At QuestFusion, we love working with entrepreneurs, and we will work hard to help your company become the next great startup success story.
This is Patrick Henry, CEO of QuestFusion, with The Real Deal…What Matters.