Consider the information following each question to get a sense of the present fundability of your business.  It is possible that with dedicated effort, a currently unfundable business may be fundable in the future, assuming that certain limitations can be overcome. 
 

Does your business have positive cashflow?

Positive cashflow is an operating imperative for all businesses.  If you’re solid on this subject, you’re off to a good start.  If you’re out of cash and have been in business a few years, chances are good that you’ve exhausted most of your capital resources.  It will be difficult to get funded in this condition.  Performing financial triage on your company may be necessary to survive, with a focus on strengthening your cashflow.  Once you are healthy again, you’ll be in a better position to get funded.

Does your company operate profitability?

As with cashflow, this vital metric is essential to survival, growth, and attracting additional funding.  Kudos if you are profitable, prepare for triage if you aren’t.

What will you use the capital for?

If you plan to finance growth, you’re more likely to attract capital than if you need to meet a balloon payment, pay down debt, or buy a new BMW.  Of course, growth alone does not necessarily mean you’ll get funded.  Growth rates, new business volumes, anticipated profit margins, and risk levels will all be analyzed, among other things.  Every significantly improved performance that growth capital will provide adds another point in your favor when talking to investors.

Is your company a lifestyle business or a scalable business?

Successful lifestyle businesses provide a comfortable life for their owners, but do not normally provide high enough returns to attract investors.  Growth in lifestyle businesses is normally funded with secured debt, additional founder investment, or bootstrapping.  Scalable businesses are more likely to attract investment capital, provided the opportunity and potential for success are compelling enough.

How many of your existing channels, partners, and customers will support your new business volume?

If you can leverage your existing relationships to rapidly and economically achieve and sustain significantly higher business volumes, your growth plans will be more credible to both lenders and investors.  If you are pioneering new markets, products, or customers, the higher risk associated with these activities will make it harder to secure funding, unless your company has a well established track record of similar pioneering success.  

How much revenue per year do you expect your expanded business can generate at the end of 3 years?

If your company has the potential to achieve revenues in excess of $30 million within 3 years, its scalability will be of interest to sophisticated angel investors.  A smaller company will typically have more modest funding requirements.  If you can satisfy lenders or investors with acceptable potential returns based on your projections, you have a reasonable chance to get funded from sources that are well aligned with your needs.

Now let’s see how committed you are to the process of raising capital.