Fundraising: Debt or Investors?

The fundarising expression, so fashionable in these entrepreneurship times, is the holy grail of growing companies and means: the set of actions carried out to obtain funds.

What began as an activity of non-profit entities has led, with the Internet’s arrival, crowdfunding and mass communication, in a tool for companies that have been able to understand the value of fundraising in order to increase and diversify the organization’s incomes without investing their own capital.

But what defines success in this fund-raising strategy? Perhaps the best indicator in the long run is to answer this simple question: did fundraising add debt or added investors to your company?

And to know the answer to this question you only have to approve or deny the following items:

• Does your company have a favorable internal culture for the achievement and distribution of new resources?

• Does your company have  an excellent financial health and doesn’t consider fundraising as the tool to save it from a crisis?

• Does your company have a plan that allows you to know how much funds are needed, what destination they’ll have, which path to follow, and easily determine when you’re diverting from the proposed path?

If you have answered YES to these three premises welcome to the world of successful fundraising, the one that manages to get not only funds, but more importantly, manages to bring allies. If your answer is NO, you are in the right time to make good decisions. Getting a team ready to review the internal culture of your company and assess your financial health is the first step. At PRIM we are experts in these topics and we want to hear from you soon.