At What Point should You Get Funding for Your Business?
It can be hard to identify when is the right time to get funding for your business. Without the proper tool, you can never expect to get all the details and come up with the perfect timing to start building your business with extra funds. However, the gain-pain ratio is able to enlighten you as to the right time you need to invest in the business idea you have conceived and make it happen and thrive.
What Is the Gain-Pain Ratio?
The gain-pain ratio is the metric that measures the expected revenue in comparison to the assessed risk. If this ratio is satisfactory, Also you need to be sure you idea is now a product, you can get more ideas here on turning your ideas into product; then you can go ahead with finding funders for your business move. If not, perhaps it is time to reassess your expectations. This is a powerful metric, offering solid facts and not just assumptions or predictions. So it should always be used in the process of evaluating a business idea prior to its funding.
What to Expect from Your Business
It is essential that your business should be productive and grow over time. Self-sustainability is truly appreciated in the market, and hence you need to make sure that the business will be able to stand on its own feet. There needs to be a viable plan about the revenue of the business and the calculations ought to be accurate. This is the reason why it is necessary to make use of advanced online accounting software. As a result, all the metrics will be taken into consideration, and the measurements will be valid. This will show you if the odds are in your favour as to the future of the business.
Forms of Funding for your Business
There are multiple ways for you to get funding for your business. You can try out different strategies, so as to come up with the most suitable option that covers your needs in full. Do not focus on a simple way of funding, as this may limit your options. Instead, experiment with different funding formulas.
Crowd funding is on the rise, and it can help you get the money you need to make your business thrive. Business incubators are also exceptional choices for you, as well as straightforward funding from business people who have seen potential in your idea. P2P lending is another innovative tool used in funding, and you can always turn to micro financing, factory or even at government grants. It is up to you to decide which of these options covers your needs and plan your strategy for swift and reliable funding.
Written by Olushola Ogunniyi
Shola is founder of probitybooks.com and a technology enthusiast since the days of Windows 95. With special affection for technology in business for motivating entrepreneurs and intrapreneurs to grow their Startup. He believes SME’s are the only solution to a sustainable economy. @sholahacom