- No more than you need
- As much as you can get
- It doesn’t matter
Zero until you’ve thought through things like:
· How to invest it?
· Where it will take you?
· A vision for how it will generate a return.
· Your own ambition and risk profile.
· The expectations and obligations of investing Other People’s Money.
No more than you need
- To reduce risk and earn an increased valuation for your next fundraising round.
- For the particular stage of your business.
- To reach your next critical milestones.
As much as you can get to:
Product-Market fit and supported by a sound Business Model, which often means its time to step it up. Raise as much as you can get. Ensuring:
- Repeatability and Scalability in your business model.
- Correctly sizing your market opportunity to attain an unfair advantage.
- You have a long enough cycle to execute and achieve your targets without being distracted.
- You can attract the best talent to fit your team and culture.
- You can manage through the unexpected.
- You can exceed expectations of your team, customers, partners, and investors.
It doesn’t matter unless you:
- Understand what you are uniquely qualified for.
- Are self-aware to know your limitations.
- Have a clear vision for your market.
- Understand the role your business plays in the value chain.
- Eventually replace funding with revenue, free cash flow, and profits.
a. Getting Investment Ready and
b. The 2 Most Valuable Documents as you Approach Investors for Funding
Seek help from experts to help put a framework together, if you are unsure of where to start. And would like to put a clear funding strategy in place.
I am always keen to understand the challenges businesses are facing in adopting measures to increase value – so, please do connect.
Ketan Shah is a Strategic Business Design expert, advisor, management consultant and entrepreneur. Especially passionate about Business Strategy, Structures and Systems, he has designed and developed the SSS Business Design® framework for startup entrepreneurs and established business owners looking to make business decisions with clarity, confidence & control. Pursue opportunities, manage profitable growth and maintain high performance. Without the overwhelm, stress and frustration.
Moksh Pty Ltd is a Strategic Business Design, Advisory, Management Consulting, Capital Solutions, Investment & Funding Partner supporting Start Up, Commercialisation, Transformation, Turn Around, Growth and Initiatives.