Entrepreneurs Must be Primed to Attract Business Funding
Every business requires capital to start as well as funds to boost its growth. Most investors want to put their money in an established business with working systems to easily identify opportunities that will bring back Return on Investment(ROI) in a timely manner.
Entrepreneurs must identify the type of investor to approach in line with their idea. They must also articulate their projections using their potential investor’s language ROI.
In addition to that, keeping financial records gives a huge boost to getting funding as it proves that there is an existing money management system and makes it easy for investors to understand the financial dynamic of the business.
During a recent workshop organized by Top Achievers Network in efforts to prepare entrepreneurs for business investors, it was clear that business owners in search of funding must have a flexible mind and be open to ideas.
Some investors like to be engaged in the business on different levels like daily, weekly, monthly or even quarterly. Depending on the nature of business, entrepreneurs should not shut their doors from such investors as they have more experience and different angles of looking at your idea.
Business owners were encouraged to give ample time for funding. The panelists noted that some businesses start looking for funds and expect to receive in the next week which is not practical.
Understanding your market and knowing your customer(KYC) are key before applying for funding. An investor will only be interested in an idea if the owner always does their homework to understands the market, upcoming trends and customer’s needs, wants and preferences as they keep changing as they are the real bosses in the business world.
Another important consideration should be on how the funds received shall be spent. Only look for money that will be spent on generating more money directly. ROI is first point of interest for the investor, therefore, projecting that you intend to spend their money on processes that do not make money will keep them at bay.
Differentiating a business plan from a marketing plan and having both in place while looking for funding is mandatory.
In the end, it all sums up to business’ marketability, sustainability and the passion the entrepreneur has for their business.