FOCUS ON FUNDINGYou have an earth-shattering business
idea. You're convinced it will stir up the
marketplace. But you can't find a banker,
venture capitalist or angel to invest in the
concept. Who's to blame? The economy,
the legal system, the bankers, the Guptas?
The truth is it's probably your fault for
not presenting funders with a bankable
business; it's your dream in the form of a
gambling proposal.
In the words of Gary Player: "The harder
you work, the luckier you get". To get
"lucky" at raising funds, you have to work
incredibly hard at getting your business
funding ready.
14 Tips to get you started
Here are some simple steps to help you
get your business ready for and worthy
of investment:
1
Write your own business plan
A business plan is not a funding
request. It should outline your strategy,
focus, growth path, key performance
indicators and risk management style.
It is a working document that must
become part of your daily business life.
Appointing someone to write you a
business plan completely mitigates the
very purpose of the document. That said,
there is nothing wrong with obtaining
expert advice on certain critical areas, in
fact it is a good idea.2
Show traction
Money follows money, and investors
want to invest in a scalable concept.
So you need to show them how you
plan to grow. Even if you can't sell your
mind-blowing invention as yet, show
business acumen by either selling related
products or by starting the patent
registration process and running market
workshops. They want to see some
kind of evidence that you've got a real
business in the making.3
Invest in yourself
If you lack financial knowledge, take a
course. If you don't know how to sell, take
a course. Show potential investors that
you are willing to learn what is needed
to make better decisions and build a
successful business.4
Stay on top of admin
Up-to-date financial records, current
financial statements and personnel
records are all required during the due
diligence process. It's a hurdle manysmall business owners fail to clear.
Comprehensive, referenceable records
will not only make the due diligence
quicker and less painful, but they also
show that you are serious about managing
and growing your business. If you don't
respect your business enough to stay on
top of the necessary admin, how can you
expect an investor to take you seriously?5
Communicate well
Great communication skills are
crucial when introducing your product or
service to the market and encouraging
your clients to purchase. Your ability
to communicate is also a key factor in
gaining the trust of potential investors.
They want to know that you will
communicate all news – good and bad- honestly and consistently, whether to
them or your customers.
6
Know your market
Your brother-in-law and six braai
buddies may think your idea is earth
shattering, but this a tiny sample – and
they are probably too polite to critique
your concept. Investors require more
than this, they want proof that you have
listened to consumers and have in-depth
knowledge of their needs and wants.How to get
your business
FUNDING
READY
Here's how to get your
company ready for and
worthy of investment...