Money—capital, fund or whatever you call it—is the vehicle required to turn your idea into a money spinning business. Your business will need money at different stages. And because of this, as an entrepreneur, you must be a fundraiser—you must learn how to skilfully raise money for your business. It is a learnable skill. However, if you truly want to access money, you must position your business in such a way that it is easy for it to access money. These are what you must do to position your business for money.
Make your business profitable: Every profitable business has the tendency to access money, either from individuals or financial institutions—banks. For a business to be profitable, it must have a product or service that is sellable. Once your product or service can attract the right kind of customers, then you have hit the jackpot. So, when setting up your business, focus energy on creating a product or service that will attract customers.
Create a formidable structure: Product or service is not what makes money for business owners; it is the structure that runs the business. The best product in the market isn’t the best product; it is the one that has leveraged on a structure to become readily available to the consumers. So, you must create a structure that can run the business efficiently and effectively. A structure creates routine. Routine creates persistent and consistency. Persistent and consistency is what makes money for the business.
Hire the right team: You can spearhead your business, but you can’t be the only one in the business. Also, if you must employ people, you must employ the right set of people; you must employ the finest. Don’t hire just because you want to hire, hire because for competency and experience. Competency and experience gets the job done. If you have to give an arm and a leg to get the right people in your team, don’t hesitate. The same team will generate money for the business if you drive them in the right direction.
Keep your books: I am not talking about the books that strengthen your business and personal development; I’m talking about keeping your financial records straight. I am talking about keeping the accounting part of your business intact. If you cannot employ an accountant, hire one. I always say this, an accountant is one of the first set of people you need in your team because such will help you to understand the money spending and making part of your business.
Keep the database of your customers: Your customers are the proof that you are in business; they are your ace card any day, anytime. So, you must keep the database of your customers. You can take it to the bank any day, anytime. I am not saying it is one of the documents you need to access loan from the bank, it is an assurance that you have a profitable business.
Network now and always: You are as rich as your network. Or better still, your network is your net-worth. So you must be an excellent networker. Surround yourself with the right kind of people. Keep a network of business owners, potential employees and investors. Keep every business card or contact information you receive. Trust me, they will come handy someday. It is easier to access money from your network when your business is in need of money.
Update your business plan: Business plan is a document required by an entrepreneur—it is like a road map to your treasure island. It is like an abstract version of your business. The same document is required to raise fund from investor from any part of the globe. So, keep it handy an updated as your go through different stages of your business.
Create credit history: Don’t wait until you need that big money for business expansion; start small and build your credit history. Start by accessing soft loans and keep to the repayment plan. That way you are assuring the bank that you are a faithful client that will not take repayment plan for granted. That’s all your banker wants to know.