I. Introduction
Whether you are a project leader, a start-up or an SME, there are a multitude ofgrants, funding, and calls for projects public and private sources of support available to assist you in your search for funding: but between finding support for which you believe you are eligible, confirming your eligibility and submitting your application, there are a multitude of steps to take, unforeseen events to deal with, qualified contacts to find, etc.
Pull the right lever at the right time in your quest for funding.
Finding adequate and accessible financing can be extremely time-consuming, too time-consuming when running a business. Start-up CEOs manage their tech development, marketing, communications, sales, accounting, finance, strategy, HR and fundraising all at once to ensure the sustainability of their business. They must become business leaders, act quickly and find the right contacts fast.
However, pulling the right lever at the right time can be crucial for a company, regardless of its size. In fact, 60% to 75% of French start-ups do not reach five years of activity (Les Echos, 2019) due to a lack of commercial strategy (42% of causes of failure) and a lack of cash flow. This is particularly true for tech companies, which find it more difficult to address their market and have long sales cycles (>6 months).
II. The importance of being support
Conversely, the Boston Consulting Group reveals that the failure rate of start-ups is halved during their first five years of operation when they receive support. It is therefore a real factor for success.
The supporting organisation will provide an outside, critical perspective on the development of the start-up or project, which the project leader may lack, given that they devote their days (and often their nights) to their business. Whether due to a lack of experience or simply a lack of perspective, it is in the entrepreneur's best interest to call on this external expert opinion. Sometimes, a small change in the offering is all it takes. Sometimes, it is a new idea or a new partnership that will make the difference.
The mentor will then take on the role of coach for the entrepreneur, helping them to develop a more pragmatic and less idealistic view of their project and how they manage it, and to define their priorities in order to structure their project.
This person will therefore provide tools and methods to develop the entrepreneur's strategic thinking, drawing on their expertise and experience. If the project leader's issues become too complex and specialised for the mentor, they will refer them to their network of experts (accountants, lawyers, etc.).
The search for funding : the key to success
We can see, then, that it is important, even crucial, for a company to have support: why is this particularly true when it comes to financing ?
It's simply the crux of the matter: time is of the essence. When starting a business or project, wasted time means lost cash flow. Of course, you need customers and a target market to validate a project and business model, but you also need financial resources to develop it.
Finding funding, yes, but where and how? Calls for projects, grants, loans, crowdfunding... There are many options available in France, for all types of sectors and needs. Among these numerous schemes, there are many specifically aimed at start-up projects. Here again, it is in the project leader's best interest not to go it alone.
This is why seeking funding, which is often a decisive factor, is one of the main reasons why project leaders seek support.
Indeed, the financial sector is highly regulated, and the schemes have many distinct criteria depending on the different funding bodies, whether private or public.
However, pulling the right lever at the right time can be crucial for a company, regardless of its size. In fact, 60% to 75% of French start-ups do not reach five years of activity (Les Echos, 2019) due to a lack of commercial strategy (42% of causes of failure) and a lack of cash flow. This is particularly true for tech companies, which find it more difficult to address their market and have long sales cycles (>6 months).
III. Why is this important?
Why use a company that specialises in professional financing ?
Those who are familiar with this ecosystem, its key players and the levers to pull to help you see more clearly in this financial jungle are companies that specialise in providing support in the search for funding. Having a good advisor, with access to their network and expertise, gives you a crucial advantage, regardless of the nature and stage of development of your project (start-up, investment, etc.) and the type of financing you are seeking (grants, interest-free loans, etc.).
It is not just a matter of allowing you to enter a closed environment and introduce yourself to a network, but also, once the right financing and contact person have been found, assisting you in putting together your application, drawing up forecasts and other financial documents, preparing a powerful and relevant pitch, etc. For example, if you want to obtain a bank loan, they will be able to negotiate the best rates with the credit institution.
Quite a job, in fact.
They will act as the link between your organisation and the funding bodies. All you will need to do is send them the supporting documents and paperwork required to put together the applications, or almost everything. You will, of course, be asked to contribute to the application with information that only you know and understand perfectly. Naturally, they will keep you informed of the progress and follow-up of the applications.
With regard to remuneration, as a general rule, support structures charge a fixed fee for the time spent on the project and a commission on the amount of funding obtained, averaging 5% but which can be as high as 8% in some cases.
A company specialising in supporting project leaders in their search for funding will be able to deploy its resources, network and expertise to serve its clients, offering them personalised support tailored to their needs, difficulties and aspirations. This assistance will ease the entrepreneur's busy daily life while training them in the world of financing and supporting them in their search and application process.
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