Dear #smartbusinessowner , welcome to today's email.

I want to take a few minutes of your time to show you why you might need to raise money for your business.

in every business, there are 2 external ways to finance it.

One is through equity investments while the other is through Debt financing.

the one you take depends on so many factors including what your overall business objective is.

whether you want to consider Equity or Debt, here are some reasons why you might need to raise funds for your business.

1.           Brand Visibility:

Funding helps the startup to build visibility and build an attractive brand thereby gaining the attention of their target audience.

In other to build visibility startups would need to invest a lot into marketing, brand promotion, general PR, and other things that help you get the right attention of your target audience.

The marketing budget and type of campaign is a function of the amount of funds at the disposal of the Startup.

Where the company relies solely on bootstrapping without external funding, it will tell on its marketing activities

2. Fundraising helps you to meet your essential needs as a startup,

Without seeking external funding, it will be next to impossible to secure the essential services that you need to get the startup up and running.

These needs include operational needs, hiring capable team members, Regulatory compliance, Intellectual property protection, securing licenses and permits, product development, startup legal needs etc.

A lot of these services do not come cheap so relying on bootstrapping alone may not get you the results you need or help you to scale as fast as you would want to.

3.  Funding helps you to scale faster.

money brings leverage and leverage brings speed.

If you want to scale fast and access some level of opportunities, you will at some point need money to do that.

4.  Securing your first significant funding gives you the leverage to secure further financing rounds.

As is expected, with the first funding you are able to get your startup up and running, maintain regulatory compliance, build an MVP, gain traction, etc thereby making you attractive to higher investors and suitable for a higher funding rounds (Venture capital or series rounds)

5. Fundraising helps in achieving the startup’s expansion plan.

With the funds raised the startup is able to penetrate new markets, build new products or improve on existing products, hire more capable hands, export the brand and its product, and basically become an international Company.

6.   Finally, each successful funding round takes you a step closer to your desired exit strategy which can be an acquisition, buy-out, merger, or IPO (Initial Public Offering).

whatever your exit strategy is as a startup, securing external funding can help you achieve that aim faster.

I hope this was helpful to you?

Cheers!

P.S. The email of today is actually an Excerpt from my latest book "Startup Funding: Key Legal Considerations and Documentation.

Reply to this email if you want to get the book