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Having a business does it ensure rising of funds
It all depends on type of business your are running and the offerings that are being offered in market and the customers who are using it.
For example lets say you have pharmacy shop in area where in you have built business with lot of personal touch and relationship and been for more than 10 years.
Being profitable and having had good captive and regular customers, these just are not good enough for raising funds lets see the reason with the above statement.
First lets understand your market penetration or catchment area, the area where in your pharmacy shop is the only catchment area as your customer are located in the vicinity and they now and trust you. So that means you cannot expand and you cannot acquire new customers and there is no penetration and addition of customers, which would bring the additional revenue.
Though you are profitable and doing good business which is growing with growth of prices of products and addition of small percentage of customers as the customer age with new diseases will ensure your business grow but it will not be double digit growth, it will not be extra growth or in organic growth.
Though this business is doing good but will not be viable for funding as the model of this business has catchment area and cannot go beyond and its market address-ability will not expand which will ensure that market potential does not increase and will only go on organic growth.
The raising of funds is on business model, if the same pharmacy shop had 15 branches then the catchment area increases, number of customers increase and market address-ability increases 15 folds but also creates the required burden on financials so what the revenue from one shop and profitability may not be the same with 15 branches.
The business model and the offering play vital role in raising of funds, the current scenario is where in investors are willing to burn money to reach out for customers or the so called customer acquisition to ensure more market address-ability happens and more customers come on board.