The economy is not making it any easier for entrepreneurs to raise capital for their startup. This is unfortunate because small businesses generate around 50% of our gross domestic product. As an experienced entrepreneur who has raised over $40M in his career, here are 5 steps any entrepreneur can focus on to help them raise early stage capital for their business.

1. Develop a business plan: This plan should outline the company’s goals and objectives, its competitive strengths in the market, and financial estimates for the next three to five years. It is important to keep this document up-to-date as conditions change in the business environment and internal operations. Also collect and write bios for partners and team members as this is very important for early stage companies.

2. Identify potential sources of capital: Potential investors may include family and friends, angel investors, venture capitalists, banks, or even the Small Business Administration. Researching each source’s requirements and criteria for investment can help inform which route is best suited for the startup. I have personally never had luck with investor platforms. These are sites that try to get you to pay a monthly fee to access their list of investors. These are very cold leads and you have no idea what their background is. So my advice is to become an amazing networker. You would be surprised how many of your friends and family and neighbors might be interested in throwing $5k or $10k at a great idea.

3. Make a pitch deck: The presentation should explain how the business operates, its competitive advantages, and its financial performance to date. A pitch deck should also showcase the management team’s qualifications and experience in their areas. I personally use the traditional pitch deck format to layout my business plans. Focus on yourself and any partners you have, and then go into the problem and solution of your business idea. Make sure you use a strong graphic design. These presentation templates can be purchased for less than $20 on sites like graphicriver.net.

4. Reach out: Make contact with potential investors. Traditionally, people go through events, industry conferences, or platforms such as LinkedIn. I personally like to Network the old fashioned way. May 20 calls a day or more to everyone you know. Explian what you are trying to do. For example... "I am launching a new business and need to raise an initial $250k to get the idea into an MVP stage. I am networking to try to find potential investors. Do you know anyone?" Once connected, the next step is to arrange meetings or calls where the startup can present the pitch deck and have a discussion about the company. I always have better luck meeting people in person where you can shake their hand and look them in the eye so they can see and feel the passion you have for your idea.

5. Negotiate: Once interested, investors may ask for additional information or negotiate on the terms of their investment. A successful negotiation will require some give-and-take from both parties in order to reach a mutually beneficial agreement. It is important for startups to know their financials and be prepared to answer any questions that come up during this process. But, if you dont know the answer, do not try to dance around around. Simply be honest and say that you will get an answer back to them by tomorrow... and do what you say you will do.