Are you looking for ways to get private funding for your research or business venture? Here are ways to start, nurture and grow relationships with private funding resources.
Know what your donors need
A private foundation can give away billions of pesos in a snap if it meets their interests, regardless of your needs and wants. The secret is in finding the right match. Your need must match your donor’s needs. That is why it is important to conduct as research on the mission and vision of a company, its patterns of giving, legal and geographic limitations and most of all, its interests.
Significant research may be needed to understand what private investor look for in a proposal. This will; help you evaluate the different approaches you may have.
Your presentation must match their business goals and the company’s passion. You also need to be able to assess how much impact your project could do to the company’s image.
You need to be aware of the different programs of the investor, and the roles they play in maintaining the company’s reputation. For example, it makes sense to apply for private funding for your recycled materials business from a company with advocacy on solid waste management.
Prepare an impressive proposal
Write down the needs statement that lays down the problems. What problem does your project intend to address? Offer concrete proof of the program’s needs, such as statistics and results of the most recent research or government data. There’s nothing wrong in arming you proposal with factual documentation.
Describe the solution and show that you are qualified to do it. Make sure that your proposal best represents the program you are proposing to your private funder. Don’t give any allowance for spelling errors, or other ‘grey’ areas that would leave a bad impression. The proposal must be accurate and specific. The paper must be crunchy clean. Be specific when it comes to asking for money. Make it persuasive, convincing and indicate a solid promise that you can deliver exactly what you promise. On top of it all, present a concrete plan. One that you can substantiate with figures or at least reliable proof that it is something ‘doable’.
Let the funder know who you are and what you represent
Trust is one of the most important issues in getting a private fund. Give your funder a concise overview of the whole organization or company you represent. Make a good introduction about your organization, your objectives and strategies, as well as your methods of addressing your problems. If you can give them a background of your agency or organization, some endorsements from other agencies and the qualifications you may have that show them why you qualify to handle such project—give it to them. It pays to let the funder know that you exerted efforts in letting them know you, before they part with their money. It is not enough that you let them know what you intend to do with the money. The most important question is, ‘why do you need funding?”
On another note, it is important to convince the investors that you have a good idea of what you do and you know exactly what you are doing. BY presenting a good business plan, you are demonstrating that you can use the financing really well and that you will have enough money to repay them in return.
Create a realistic budget
Write down the realistic estimate of the costs you may incur in conducting the project. It is costly to implement and operate a project—so brace yourself for expenses such as rent, salaries, supplies and other daily operational expenses on top of the required capital to get started with your project. Make a clear outline with a breakdown of expenses—such as how you plan to allocate the money you receive from the private funding resource and other sources to support your project.
If you’re looking for private funding, but you’re not sure how you can get approved—you might want to try applying for alternative funding options. Second mortgage, business loans and other small business loan products available at Australian Lending Centre are practical alternatives to intricate private funding options.
A solid budget is indispensable in managing your working capital.
You may be able to reduce the costs of your daily operations as well as meeting financing needs and debt relief. It is also important to implement cost-cutting measures such as limiting the credit to your old customers and chasing up overdue debts. Using a point of sale system to track the cash coming in and going out on a daily basis could also improve your cash flow. If you have many collectibles, it may be time to reduce the collection period by at least 7 days. It could at least increase your cash flow at times when suppliers are most likely to collect payments from you.