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1. Decide the necessary capital amount The initial step in the capital raising process is deciding the quantity of funding needed. This entails analyzing the company's financial needs, considering factors like projected growth, operating expenses, and risks. By accurately evaluating the necessary funding amount, businesses can prevent over- or underestimating their funding needs. 2. Identify potential sources of capital Once the amount of capital needed has been determined, the next step is to identify potential sources of funding. This can include traditional