Getting Funded: Useful Tips for Entrepreneurs and Startups

Depending on your business goals, securing funding can be a critical step for entrepreneurial success. In this guide, we walk you through what to consider when applying for funding—so you’re well-prepared to attract investors or secure grants. 

Let’s begin.

1. Identify your funding sources

The first thing you want to do is determine which type of funding source is most suitable for your business or project. There are plenty options to choose from, such as:

• Venture capital A type of funding that provides capital to early-stage businesses, usually in return for shares or an ownership stake in the business.

• Angel investors Private investors who invest in startups, usually in return for shares or an ownership stake in the business.

• Grants Non-repayable financial awards given by government entities and organisations. 

• Crowdfunding Raising funds from a large number of people, each contributing a relatively small amount towards the funding goal.
  

Each of these options serve different purposes and may have different requirements—so it’s best to research which one is best suited to your business or project’s needs.

2. Prepare your business plan

Having a comprehensive business plan is essential, and can help with presenting a compelling case to potential funders. A business plan should include things like: 

• A clear value proposition

• Market analysis

• Financial projections
  

And more. Learn exactly what to include in our business plan cheat sheet below.

Alpha Artistry Business Plan Cheatsheet.pdf

Download PDF • 86KB

Put together a persuasive pitch:

What's a pitch? A pitch is where you present a business idea or project to a group of people who can help bring that idea into reality. For example, you may pitch to investors who can help fund your idea. A persuasive pitch can make or break your application success. When pitching your business or idea, its essential to communicate the following:

1. The problem your business or idea is solving.

2. What makes your solution unique.

3. The strategies you’ll use (or are already using) to achieve your goals.

4. You’ll also want to addresses any investor concerns, i.e revenue streams profit margins, pricing strategies.
   

It’s also a good idea to demonstrate how your project will bring about positive change, or what social issues the project aims to tackle. Here are some questions to prompt you:

• What positive feelings will my project help to foster in communities?

• What shared issues will this project help to combat?

• What new ideas will my project help people to learn?

• Who will my project help, and how?
  

Navigating the application process:

Depending on the type of application you’re making, the process may involve deadlines, multiple steps, or providing supplementary documentation—for example, some grants may be open for applications all year long, on a quarterly basis, or may have more specific deadlines. It’s important to stay organised and set aside adequate time to complete, review and submit your application. 

Tip: Set calendar reminders for your application deadlines.

The funding process IRL: Taiwo's experience

Meet aspiring lawyer and Crime Commissioner for the London Borough of Redbridge, Taiwo Ademola. Taiwo is currently developing a social enterprise called ‘Streetlights Technologies Ltd’, and is a candidate for a government-backed accelerator programme at The School of Social Entrepreneurs. We interviewed Taiwo for his first-hand experience and expertise on the funding programme process. Here’s what he had to share:

Taiwo’s tips for entrepreneurs applying to funding programmes:

The application process for funding is nuanced and not always straightforward. So here are a few things I’d recommend you consider when applying for funding:

Plan ahead This may sound simple and obvious, but many people overlook it. Trust me when I say that you should plan ahead and give yourself more time than you think you need to apply. I suggest allowing at least 2 weeks. This is not an application process you want to rush. The reason is that sometimes funders want to understand your business’s financial health, what impact you’re trying to achieve and/or your hypothesis—and you might not have all to hand or fully fleshed out.

Don’t get mesmerised by the money Read the small print to determine if the fund you’re applying for is equity or non-equity. It’s essential that you understand the difference between these two options as they are very distinct. The former provides capital in exchange for a stake in your business, such as on Dragons' Den, while the latter is designed to provide non-stake seed investment to fulfil a specific goal that aligns with the fund. This is most typical for individuals running social enterprises, but it is also possible for other start-up businesses through funds available in accelerator programs, etc.

Be clear on the reason you’re applying

Before applying for funding ask yourself the following questions:

• Why do I need this money?

• What will I learn?

• Can this take me to the next level?

• What can you bring to the program and/or fund?

• How have past cohorts or alumni fared?

• Who is financing the fund?

Be decisive and proactive

Lastly, avoid analysis paralysis! Not every fund expects you to be a million light years ahead, they understand the difficulties of building and running a business. That being said, it is crucial to be truly objective during the application process so as not to waste time. Be completely honest about the current state of your business. If your business fits the brief/requirements, speak with the program administrators early.

5 Things I wish I had known about the application process beforehand:

1. Your current piece is not your masterpiece. Your business venture and/or idea, no matter how brilliant you think it is, will evolve or change.
   

2. The funding programme is only what you make it. Funding programmes are a huge commitment. Meeting your funders' expectations as well as your own is tough enough, so there is no time for half-measures. Go all in and remain curious. 
   

3. My other piece of advice is to be uncomfortable, unorthodox, and network, network, network. Funding programmes are a great way to boost your network and broaden your horizons. Unshackle yourself from your belief of needing to speak with a specific individual with a specific skill set. But also, the key to finding other pots of funding is within your networks.
   

4. Entrepreneurs have the ability to work cross-functionally and are in a great position to hold you accountable, intellectually challenge you, and take your thought process and plans for your business to new heights. So, stay open-minded and open feedback.
   

5. This tip is for everyone: "Get out of your own way." It’s really easy to assume that because you’re either an expert in your knowledge, and/or experience of the business you’re trying to build, that people cannot relate to you. I challenge this way of thinking and encourage you not to overthink it, take all the help and resources you’re given!

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About Streetlights Technologies Ltd

Taiwo founded Streetlights Technologies Ltd as a Tech 4 Good Social Enterprise with a clear mission: to develop technology that addresses society's greatest social challenges. Their goal is to create innovative solutions that empower communities to thrive today and in the future. Keep up with Taiwo on Instagram [@taiwo_ademola_7]