External funding or investment is required in a company during its growing stage. After it is well established and goes to a sublime position, the funding can also be shifted to internal sources. A capital investor needs to realize the potentiality of the product made and then decides about external funding. When a business is set up, the question arises of when to receive external funding. We will be discussing the signs of when your business needs external funding.
When you know your product
Confidence is the key to business. Know your product and its utility to people. When the purpose of your business is clear go for external funding. Investors look for a well-framed business plan and how much the product can deliver. The product should be appealing to the people who should be benefited through it according to the purpose they serve.
Presence of a good team and a well-planned business strategy
Business is just not about making your product but having a reliable team who are comfortable with the business and is innovative when it comes to their work. Also, a well-furnished business strategy is required. This strategy works as a protocol for the team which needs to be followed. If you are confident and ready to take the risk, seek for external funding.