Completing a successful round is usually a crucial part of a business’ journey. Whilst there are many company’s that bootstrap, most businesses won’t be able to stay afloat without a, or multiple, cash injections. Capital raised may be used to hire staff, purchase inventory, market the company and scale – all which require cash.
Raising money is a tough game and it takes a lot of resilience and planning. However, once you do complete a successful round, it’s about how you can maximise it to your advantage.
In this article, we talk through four things to consider after you’ve fundraised so that you can experience the success in your business you planned for.
When raising money, you spend a lot of time meeting and talking with investors. Some investments only get finalised after a few coffee meetings. The relationships you build are not just key for your fundraising round, they’re also key post-fundraising.
Schedule quarterly updates to inform shareholders and investors of your business’ progress, or challenges. Don’t be afraid to admit if things aren’t going to plan, the earlier you’re able to have these discussions, the earlier you can find solutions. As well as demonstrating what you’re doing to resolve any challenges you’re facing.
The best thing you can do whilst fundraising is prepare an efficient hiring process. We created a free Hiring and Interviewing Playbook to help you make the right hiring decisions. The last thing you want is to raise money, not have the resources to implement your business plan, then hire in a rush.
The other point is to hire slow, fire fast. Building a team isn’t just about having people showing up to work, it’s about making sure your team can a) do the work and b) fit into the company culture. You want a team that can succeed as a unit whilst trusting them to work independently.
Implement your business plan
Whether you completed a funding round to hire a team or market your product, you would’ve had a business plan which explained to your investors your targets, your strategies and where you’re taking the business. It’s now time to put the funding where your mouth is.
After all, as mentioned above, you are going to be sending updates and investors want to know that besides talking a good game, you’re able to execute. Not only does this establish trust, it also makes fundraising a lot easier for you in the future.
Even though your business now has some money to play with, it’s important to remember to be as lean as possible. It’s easy to pass off small subscriptions or go crazy with your marketing budget without thinking about how this may affect the rest of your business in the long-term.
The whole point of you completing a successful round was to expand your business’ opportunities, not minimise them. Stick to your budget, be resourceful, ask for help, have regular meetings with your accountant (or finance director) and don’t shy away from the numbers. As a founder of any business, the numbers are on you so you’ve got to take responsibility.
Now that we’ve explored the four things you must consider after completing a successful round, it’s time for you to do the work and smash the goals you’ve set!
If you’re looking to raise funds for your business, apply to raise with Seedrs here.
How to Interview and Hire Effectively for Your Startup
Setting Key Milestones in Startup Fundraising: From Seed to Series B