Do you have a good business idea and need finance? Do you have existing business and you need to move your business to next level? While financing is very important there is need to remember also that business success hinges on meeting peoples’ needs. Many would-be entrepreneurs think that the reason they are yet to start their own business is because of lack of financing. The good news is that financing is no longer a problem. Let me explain.
From an article written by INC. staff titled Ten Ways to Finance Your Business, were listed a few ways to finance your business like Getting a Loan, Using a Credit Card, Crowd Financing, Raising Money from Family and Friends, etc. Out there are some other fantastic articles on financing like 14 Creative Financing Methods for Startups by Nicole Fallon Taylor. These are good ideas. Let me however, add new angle to financing your business made easy I learned from a good friend.
Let us assume that you want to finance a business that costs eighty thousand US dollars ($80,000)
Success is finding a need and meeting it
What need or challenge will your business or idea meet? Businesses exists not just to make money but to meet customers’ needs.
Building the right team
Whatever your idea or business is, there is a right team to make it work. An entrepreneur’s major task that determines whether he or she succeeds or fails is the ability to put together and lead the right team for his or her business/idea. The right team plus good product is a winning combo. This may include communities, startup workers, experts, government etc.
Read also: Money is People
This is a skill that everyone entrepreneur needs to excel at. In the course of starting a business you will be dealing with numerous people of different shades of character and expertise. Know what you are doing. Everything is negotiable.
Let the experts do the work
You can’t be everything, obviously. Get the expert to show you what you have to do and how much it will cost you. The experts should be the one to advice on cost of the project. Let’s assume your project will cost $80,000 USD. Get the details in figure. It’s also possible that you are an expert in your business but consult very well. Have a technical proposal that details costs. This should include land, equipment, salaries and all inputs.
Identify your market
When you finish your products, who are those people that will buy from you? You must ensure that you have existing market or you have to create a new market if possible. Whatever is your business model, make sure you have an estimate of your revenue. Some entrepreneurs who are starting up don’t even know how to estimate their revenues. They just put unrealistic estimate to win the favour of people or to console themselves that their business will be successful. This is beginning of their failure. Your revenue in figures must be realistic.
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What are the sources of your information?
Are the sources of your information reliable? This is very important because your investors will want to know. A reliable information source is proof that you are, at least, prepared. Good preparation prevents poor performance.
Gather people who can finance your business easily.
There are lots of people who are working and want to invest their money on good businesses. Some of these people may also have the same vision that you have or may at least become interested in your vision. It could just be that they have been waiting for somebody like you to approach them. People want to build and be part of successful businesses that they can trust and rely on. They are all in many multinational companies, governments and banks all over the world.
For example, you could work hard and gather fifteen (15) people who can contribute five hundred dollars ($500) monthly from their salaries. In a year, these fifteen (15) people would have contributed ninety thousand dollars ($90,000) for the business.
How do you get these people to finance your business by contribution?
Share your dream and vision with them. Don’t be afraid whether they will steal it or not. Nobody will steal it. Nobody can do that business better than you. If they want to, competition is allowed.
Boldly announce your dream and vision to others expecting them to believe in you and your vision and convince them.
Prove to these investors with facts and figures and also tell them the source of your information as outlined above.
See also: Five Important Principles Of Growth
Gather these people and let them become investors, part owners and employ cooperate governance and management. Learn how to manage people.
Never, never, never ever spend somebody else’s money without first doing the legal papers properly. Submit financial report to them monthly and any other reports as necessary.
Go to the bank and borrow the whole money you need
Prepare your business plan and go to the bank with all the agreements and papers. They will advise on what to do and once you fulfill them, they will finance the project.
Financing your business is not your challenge. Your challenge is that you have to come up with a great business idea, learn proven strategies on how to go about it and go make some money.
I am Kenechi Nwogwugwu, follow me on twitter @ifekentus
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