Money is important. It is the engine that drives the growth of every business in any economy. But one of the challenges of entrepreneurship is accessing fund. Quite a number of startups are struggling to stay above the waters. Some are out of business for lack of capital. Whoever told you that you don’t need money to start, manage and expand your business, didn’t tell you the entire truth that you need to know. As an entrepreneurs, you must be a fundraiser.
Published July 22nd. 2020
Fortunately, these days, there are several
opportunities available to entrepreneurs. Some successful business
leaders—organizations and the government too—are setting up philanthropic organizations
to assist budding entrepreneurs with seed capital. Also, since entrepreneurship
is as trendy as Instagram and TikTok, angel investors and VCs are searching for
businesses to invest in. So, it has never been a better time to be an
entrepreneur if you truly know what you are doing. Although accessing fund is
not as easy as chatting on Whatsapp, if you know the necessary steps to take,
you can be the next lucky entrepreneur. Here are the necessary steps you need
to take to help you access fund.
Step
1-Have a money spinning idea: Ideas rule the world. This of course has
become a cliché, but it is the truth. Every successful business you see around
you is a product of an idea. The conglomerates with skyscrapers or the small
businesses operating from the trunks of cars or garages grew from ideas. So,
the first thing you need is an idea; a spectacular one. Or else, it won’t spit
money. Although I am from the school of thought that there are no foolish
ideas, your idea needs to be unique so it won’t be another me-too idea that
will be lost in the crowd.
Step 2-You
need a business plan: Quite a number of entrepreneurs don’t believe in
business plan and so did not start their businesses with one. But if you need
someone to invest his or her hard earned money into your business, then you
need a business plan. A business plan is a document that you as an entrepreneur
need to properly understand the direction of your business. It is your road map
to your destination. Also, a business plan is a universal document that you
need to raise fund for your business. When writing your business plan, remember
to focus on facts and figures. These two key factors will attract your
investors. Your facts must be up to date and figures must be real enough to
yield reasonable profit within the speculated time.
Step
3-Start small: It is not wise to carry your idea or business plan around
hoping that you will start your business when you get an investor. That way,
you will never start. Get up and start small. Don’t wait until you have
everything in place; start with whatever you have. In fact, it is not advisable
to start big even if you can access all the money in Swiss Bank. Starting small
will help you understand your business, the market—customers—and industry. Most
businesses that you see and admire all started small; yours won’t be the first.
Start small and focus on result. Result is all you need to prove that you have
a worthwhile business. Result is what your investors will be interested in.
Step
4-Shop for investors: Yes, you have to shop for investors. It is not like
going to a grocery store, but investors won’t come to you. You have to find
them. They are everywhere around you. They are your next door neighbor, family
member, friends, and colleagues in the office, distant relations and total
strangers too. To find investors, you have to learn how to identify and
approach them. You have to learn how to sell your business to them. Make sure
you have your facts and figures right; that is what your investors truly want
to know. And once you find a potential investor, pitch your business so well
that it will be too good to resist. And like they say, the rest will be
history.
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