17 Top Recommendations for Securing Funding for Your Small Business
Securing funding for a small business can be challenging, but it’s often a necessary step towards growth and success. We asked industry experts to share their top recommendations for small business owners seeking to secure funding or investment. Here are the steps in the process that proved most crucial for them. Use their insights to help you navigate the complex world of business financing.
- Prepare Clear Story Backed by Solid Numbers
- Mitigate Risks Before Pitching to Investors
- Build Strong Financial Foundation for Resilience
- Align Funding Strategy with Business Goals
- Define Value Proposition and Establish Relationships
- Prove Traction Before Seeking Investment
- Determine Appropriate Funding Amount for Growth
- Craft Compelling Financial Forecast for Investors
- Balance Vision and Execution in Funding Pitch
- Humanize Funding Process Through Personal Connections
- Organize Company Records Before Seeking Investment
- Develop Comprehensive Business Plan for Investors
- Network and Communicate Vision Effectively
- Prepare Investment Deck and Explore Funding Options
- Strengthen Legal Foundation Before Negotiating Terms
- Start Preparation Early for Successful Fundraising
- Explore Alternative Funding Sources for Growth
Prepare Clear Story Backed by Solid Numbers
My top recommendation for small business owners seeking funding is to come to the table prepared with a clear story backed by solid numbers. Lenders and investors want to see not just where your business is today, but where it’s headed — and how their capital will help you get there.
For me, the most crucial step was having clean, well-organized financials and a plan that tied every dollar of funding to a specific outcome, like expanding a product line or hiring more staff. That level of preparation built confidence and made conversations with funders much smoother. If you’re starting, take the time to really understand your financials and craft a plan that shows both stability and growth potential. It not only improves your chances of securing funding, but it also gives you a roadmap you can lean on as you grow.
Jared Weitz
Chief Executive Officer, United Capital Source
Mitigate Risks Before Pitching to Investors
My top recommendation is brutal honesty: fix your business model before you pitch investors. After helping thousands of companies raise over $4.3 billion, the biggest mistake I see is entrepreneurs who think charm and vision can overcome fundamental flaws.
The most crucial step is what I call the “risk mitigation audit.” Investors aren’t buying your dream — they’re buying your ability to handle what goes wrong. We had one client in clean tech who initially pitched their solar panel technology, but investors kept passing. When we rewrote their plan to address the three biggest risks (manufacturing delays, regulatory changes, and Chinese competition), they secured $2.8M in their next round.
Most founders obsess over market size and growth projections, but investors decide based on your risk analysis. Document every major risk category — market, technology, operational, management, legal — and show concrete steps you’ve taken to mitigate each one. One biotech client got funded specifically because they had backup suppliers for critical components when their main vendor went bankrupt during COVID.
Don’t fundraise when you need money — fundraise when you don’t. The companies that successfully raise capital are the ones who could survive without it but want to accelerate growth. Desperation kills deals faster than bad financials.
Charles Kickham
Managing Director, Cayenne Consulting
Build Strong Financial Foundation for Resilience
When cocoa prices spiked last year, the cost of two pallets we had ordered jumped by thousands of dollars. For a small bean-to-bar chocolate shop in Michigan, that could have been devastating. What saved us was preparation. We had already built a strong financial foundation by understanding our costs line by line, and that turned a potential crisis into something manageable.
Here’s the truth: passion is important, but it is not enough when you seek funding. Investors and lenders want proof that you understand your numbers. In our case, we could point to cost of goods sold, sales projections, and margins, along with exactly how capital would keep us resilient.
My advice for small business owners is to build your financial foundation before you need it. Funding does not just follow passion. It follows preparation.
Matt Cross
Co-Founder, Harvest Chocolate – Bean to Bar Chocolate & Chocolate Tea
Align Funding Strategy with Business Goals
As a founder who has raised capital for my own ventures and also invested in dozens of startups and small businesses, I can say this with confidence: clarity beats everything. Know why you’re raising capital and what outcome you’re aiming for — because not all money is equal, and not all paths lead to the same destination.
Capital is everywhere — VCs, angels, SBA loans, crowdfunding — but your choice should align with your goals. Want to grow fast? VC might fit. Want control? Bootstrapping or debt may be better. The biggest mistake I see is founders chasing funding without first aligning it to their strategy.
The most crucial step is crafting a tight, believable story. Investors back people who can clearly explain the problem, their unique approach, and how funding turns into value. And most importantly — build relationships before you need them. That’s what turns “just a pitch” into a real opportunity.
Abhi Godara
Founder & CEO, Venturz
Define Value Proposition and Establish Relationships
When you have a small business and you are seeking funding, it can be quite daunting. However, I would first suggest defining your value proposition. Investors and lenders would be interested not only in a good idea but also in a clearly provided problem that you are solving and why your solution is so great. My pitch focused on the immediate interest, as I ensured that our pitch featured both the power and scalability of our product. An effective, engaging story can be quite effective in getting attention.
Preparation was the most important thing to me. In addition to a business plan, I spent much time creating realistic financial forecasts, verifying our assumptions with actual customer responses, and finding possible risks and ways of mitigating them. Such detail instilled in prospective investors the confidence that we had a vision and were not solely looking at the short term. Preparation leads to trust, and it is a door-opener.
Finally, I would highlight the fact that relationships should be established at an early stage. I would not go to investors solely when we required funds, but actively build authentic relationships within the ecosystem, updating them, consulting them, and listening to their feedback. Most of those conversations even shifted into investment conversations before we were even ready to raise. For small business owners, relationships and preparation often outweigh even the most polished pitch deck.
Chunyang Shen
Founder at Jarsy Inc., Jarsy Inc.
Prove Traction Before Seeking Investment
My top recommendation for small business owners seeking funding is to prove traction before you pitch. Investors don’t just buy into ideas; they buy into evidence that your vision works in the real world.
For us, the most crucial step was showing early proof: 500 creators onboarded at launch and 12 brand partners generating immediate revenue. That traction made the conversation less about “why us” and more about how fast we can scale.
The advice I’d give: focus on building undeniable proof points such as real customers, revenue, or community adoption. When you walk into the room with results instead of only projections, you shift from asking for belief to showing momentum, and that’s when funding doors open.
Taylor Humphries
CEO, Ranked
Determine Appropriate Funding Amount for Growth
A lot of business owners stumble at the very first stage, simply because they don’t ask for the correct amount of funding. Some are overly cautious and end up asking for less than they really need, which leaves them short a few months down the line and in a further hole, as they’re now already committed to a financial plan that doesn’t ideally support their needs. Others go the opposite way, pitching for a figure that’s far too ambitious without the numbers or strategy to back it up, which can make investors or lenders lose confidence quickly.
The sweet spot is somewhere in between, and it usually comes from slowing down and becoming incredibly familiar with the business. What plans do you have (and want to have!), where is the growth going to come from, and how much capital does it actually take to make that happen? All the time, we see that clients rush through this stage in a panic, but it’s the groundwork that shapes everything that follows. If you can be clear on the “why” as well as the “how much,” you’re already halfway to making the right impression when you sit down with a bank, funder or investor.
Tom Hawley
Managing Director, Monmouth Group
Craft Compelling Financial Forecast for Investors
The most pivotal step, in my experience, isn’t just having a financial forecast — it’s building one that tells a compelling, believable story. Too many founders throw together spreadsheets to “tick the box,” but a great forecast should actually guide the conversation. It should show exactly how the funding will fuel growth: how every euro ties to a milestone — whether it’s launching a product, hiring a team, or breaking into a new market.
And think beyond the next quarter. A 2-3 year view gives funders confidence that you’re not just solving for today’s problems, but thinking strategically about where the business is headed.
One thing I always remind founders: don’t treat lenders or investors like gatekeepers — treat them like partners. Ask questions, share your logic, and be open about assumptions. That openness often matters more than perfect numbers.
Abin Joe
Senior Bdm, Knote Group
Balance Vision and Execution in Funding Pitch
When business owners ask me how to approach funding, my first piece of advice is always about clarity. Investors look for a simple, well-structured story of why the business exists, how it adds value, and where it’s heading next. Numbers, pitch decks, and projections are useful, but what really makes an impression is when those numbers connect back to a bigger purpose. If the vision is not explained in a way that feels practical yet inspiring, it becomes hard for others to see why they should invest.
What changed things for me personally was the preparation I put into building trust. I tried to anticipate the tough questions investors might raise and prepared evidence for every claim. I noticed that broad promises didn’t help much, but concrete examples, strategies, and data did. Whenever I could highlight results from earlier work and back it up with proof, the tone of the conversation shifted. Instead of sounding like a funding request, it became an opportunity to join a growing journey.
That’s when I realized funding isn’t only about financial figures. It’s about showing that vision, execution, and opportunity line up. Investors want to see that you can handle the present with discipline and still imagine what’s possible for the future. Once you strike that balance, your chances of attracting investment rise sharply.
Bhavik Sarkhedi
Founder & CEO, Ohh My Brand
Humanize Funding Process Through Personal Connections
My top recommendation for small business owners seeking funding is to build personal connections with potential lenders rather than relying solely on traditional pitch decks. When I was seeking funding as an entrepreneur, I found that working with a local Small Business Development Center (SBDC) advisor who could introduce me to lenders and writing a narrative letter about my vision proved far more effective than just presenting financial projections. This relationship-based approach allowed me to negotiate a loan structure that actually worked for my business’s cash flow needs. The most crucial step was humanizing the funding process and helping lenders understand not just my numbers, but the story and people behind my business.
Sheryle Gillihan
Co-Owner, CauseLabs
Organize Company Records Before Seeking Investment
My best advice for small business owners is to get your paperwork and records in order before reaching out for funding. Many business owners focus only on the pitch itself, but what really matters is showing investors that your company is organized, compliant, and built on solid ground.
From what I’ve seen, this preparation makes investors more confident and speeds up the process, since it removes a lot of the common roadblocks.
Scott Boyer
Founder and Owner, National Document, LLC
Develop Comprehensive Business Plan for Investors
The first step is to develop an excellent business plan. Investors don’t just want to know what you are doing; they want to know how you are going to make it happen. Having a clear idea of your market, your goals, and your finances can make you far more appealing.
If you sit back and wait for a deal to land in your lap, it is unlikely to happen. You have to get out there, talk to investors, show your face at events, and create an online presence. The more people who know about your business, the better your chances are of getting the right investment.
The greatest lesson I learned was effectively communicating my vision, after which everything just fell into place. It was never about the perfect pitch. It was about showing why my business was important and what it could actually deliver.
Deepak Shukla
CEO, Pearl Lemon
Network and Communicate Vision Effectively
I can share some details from an accountant’s point of view.
The most important factor is usually who you know — so, if you are not connected to anyone, then networking is probably the best thing you can do to improve your chances of getting an investor.
Your investment deck is also important.
It should be punchy and cover key information, but don’t make it so long that people don’t read it all! You should cover the concept, what you are trying to achieve, who the team is — expertise and knowledge of the market, competitors, and then some forecasts.
You can also look for funding, grants, and loans from local or central government.
Erin Walls
Founder, Director, WallsMan Creative
Prepare Investment Deck and Explore Funding Options
My top recommendation to small business owners is simple: don’t wait until a term sheet is on the table to sort out your legal foundation. By that stage, you’re already negotiating from a weak position — every gap in your structure or contract portfolio gives the investor a reason to lower valuation or demand stricter terms.
From what I’ve seen as a lawyer, the decisive step isn’t chasing a “crystal-clean” company — that doesn’t exist, and investors know it. The real game-changer is removing stop-factors and showing you have a roadmap for the rest. When founders walk into the room saying, “These key issues are already covered, and here’s what we plan to close in the next 12-24 months,” investors stop treating risks as red flags and start reading them as proof of good management. And most importantly — they shift their focus away from legal gaps and onto the actual pitch, the product, and the business potential.
That shift is what makes the biggest difference. Legal preparation isn’t about perfection; it’s about positioning. Many founders make the mistake of trying to hide issues that will inevitably surface during due diligence — and that always backfires. The founders who take control early go into funding talks not as people asking for money, but as partners who are clearly in charge of their business.
Polina Varfolomeeva
CEO & Founder, Ation Law
Strengthen Legal Foundation Before Negotiating Terms
I’m an M&A advisor who has helped dozens of companies raise funds by selling equity or debt. The single greatest cause of failure in these tasks may sound trite, but it remains true: inadequate preparation.
To prepare effectively requires the business owner to:
1) Obtain a reasonable, defensible valuation
2) Clean house
3) Anticipate — and have the systems capable of responding quickly to — due diligence requests
This means starting six months before going to market.
RYAN KUHN
Managing Director, Kuhn Capital Inc
Start Preparation Early for Successful Fundraising
My business portfolio consists of various online ventures and like many founders, I’ve had my share of pitches, rejections, and lessons in what actually gets investors to lean in.
So, here’s my top recommendation for small business owners:
Don’t just sell the dream — show investors the system behind it. When Ruda (my co-founder) and I were seeking funding conversations, we realized that passion alone wasn’t enough. The step that proved most crucial was documenting and articulating a clear, repeatable growth engine. For us, that meant showing our mastery of SEO and digital acquisition: how we could consistently bring in thousands of readers at low cost, and then guide them into our ecosystem.
An investor once told me something “as a secret” at a conference in Dubai, and I still remind myself of this from time to time: investors aren’t just looking for visionaries. They’re looking for operators who can prove they’ve de-risked the path forward. When you can walk into a room and say, “Here’s how we acquire users, here’s what it costs, and here’s how it scales,” you immediately stand apart from the dozens of entrepreneurs pitching on passion alone.
That’s the paradox — funding often flows not to the loudest vision, but to the clearest plan.
Justin Brown
Co-Creator, The Vessel
Explore Alternative Funding Sources for Growth
When it comes to fundraising, don’t wait until you desperately need the money to start engaging with investors. Building strong relationships ahead of time is critical. That way, when you do raise, you’re not relying on cold outreach but instead reaching out to people who already know you, your vision, and your progress.
A good place to start is by asking for advice rather than money. This lowers the pressure, opens the door for honest conversations, and helps investors get to know you in a natural way. Once that initial connection is made, keep them updated regularly — share progress, key wins, and milestones. Consistent communication builds trust and shows that you’re capable of executing on your plans.
At the same time, make sure you’re truly investor-ready. Have your data room organized and complete, prepare a clear short deck that you can send out quickly, and know exactly how you’ll use the funds you’re asking for. The more clarity and preparation you show, the easier it is for an investor to say yes.
The most crucial step, in my opinion, is doing your due diligence on the investors. It’s not just about money — are they the right fit for your business? Look at their portfolio, their network, and whether they can help build your leadership team or open doors. Since these relationships often last longer than a marriage in the UK, make sure they’re the partner you want on the journey.
Lizzie Williams
Programme Manager, Tramshed Tech
