Having a
great business idea is only the first step in the journey to raising your
business empire. Turning your business idea into a money- making venture
requires raising the capital necessary to get your blessing running and that
represents the next step of thousands of other steps.
In starting your own business, the most
challenging task you have to face as an entrepreneur is raising money as
capital.
The ability
to raise money to start a business is one of the tests you must undergo as an
entrepreneur. As daunting as it may seem, the challenge of raising money is not
as tough as you think. It is no secret that in your quest to raise money to
start your business you are bound to face a lot of obstacles. It would be very
unfair of me to promise you otherwise. However, the good news is that it can be
done as there are some people, some institutions and some organisations willing
to look at investing in start – up businesses.
There are
many tried and tested ways of raising money to start your business which have
been used by many famous entrepreneurs whose businesses have become household
names, including Bill Gates (Microsoft), Michael Dell (Dell computers) and Richard
Branson (Virgin), to name a few. For maximum success, you would do well to use
a combination of different tactics to employ when you want to raise capital for
your great business idea.
Using feasibility business Ideas
The first and basic key to raising money is to
have a business idea that is feasible, that is practicable, and that is
workable. You wonder why? The first question any investor you approach will ask
is this: How profitable is your business idea? That is because no investor will
want to put his money in a business that is impossible and not viable. They
will also want to know the expected return on their investment and the time
frame within which to recoup their initial investment. Before you embark on a
quest to raise money, carry out a feasibility study to determine the
profitability of your business idea.
Using a business plan.
Another
prerequisite in the process of raising money for your business idea is a good
business plan. One of your first moves when you want to source for funds to start
your business should be to put a comprehensive business plan. Your business
plan will include details of your background, education, training experience
and any other personal qualities you possess.
Your
personal qualities and experience are often regarded as assets to your
business. Your business plan should also explain in detail the modalities of
how you are going to use the money you need.
It should
also explain in detail your proposed business idea, associated expenditure, the
market research undertaken, and your financial projection and so on. Above all,
your business plan should describe in detail what makes your business differs
from that of your competitors. What will interest your investors the most about
your business plan should state precisely what any investor should expect as
returns on their investments and also, when and how you are going to pay it.
Personality,
Appearance and presentation style
Next
thing to consider is your personality, your appearance and your presentation
style. When approaching an investor, remember you have only a chance to create
an impression in his or her mind. Therefore, you must be conscious of your
appearance, don’t appear rough and unkempt and, please, try to look
professional. In the game of raising money for your business, appearance
matters a lot.
Now to
your presentation style: your manner of presentation will determine the success
or failure of your quest to raise money for your business idea to your
investors with a high level of confidence, because the better you are at
communicating your strengths to them, the better your chances of raising money.
If you lack communication skills, read up books on the topic.
Vanguard
Business: By Peter Osalor
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