HOW TO RAISE FUNDS FOR YOUR BUSINESS (I)
II Kings 4
The issue of fund-raising is a major issue for entrepreneurs, but there are ways around it.
Before you borrow money for your business, there are questions to ask and factors to consider:
HOW MUCH CAPITAL DO I NEED?
Depending on the size of your business, you need to first figure out how much funds you need and then add another 10-15% for miscellaneous expenses. Until you know how much is needed, you cannot begin to ask people to loan you money.
Faith is good, but if you borrow money out of faith that things will work out without proper planning, the business might fail. Don’t borrow more than you can handle.
Invest in assets not liabilities.
BE GUIDED BY A GOOD BUSINESS PLAN
Under normal circumstances, you should not start a business without a plan.
WHAT IS THE FINANCIAL VALUE OF YOUR BUSINESS?
Knowing the total financial value of the overall business helps to determine how much capital you need. You must know the worth of the business today; how much it will be worth in the next 2-5 years.
WHAT IS THE LIKELIHOOD OF ACHIEVING SUCCESS IN THAT BUSINESS?
Do not rush to start a business; make sure that whatever you want to start has a huge success rate.
WHO MIGHT BE INTERESTED IN INVESTING IN THE BUSINESS/COMPANY?
The moment you borrow, it is a debt; therefore before you borrow, you must know the right people that will be interested in your business enough to invest in it.
No business man can sustain his business with his own money alone – this is why you must be a man of integrity so that people can trust you enough to give you their money.
CAN THE BUSINESS ATTRACT INVESTORS?
Do not overlook things like the aesthetics of where your business is located, delivering your products and services on or before delivery date, etc. Ask yourself, the way you are doing your business, are you attracting clients and investors.
CAN YOUR BUSINESS STRUCTURE SUSTAIN AND ADD VALUE TO YOUR INVESTORS?
Every investor is looking for where to put his money and get value in return.
WHAT ARE THE LEGAL IMPLICATIONS/ADVICES FOR YOUR BUSINESS?
Invest in a legal practitioner, put everything in black and white especially when you are bringing in other people, like investors?
AM I WILLING TO INVEST IN MY BUSINESS?
Some entrepreneurs are stingy and will not invest in their business – this is very wrong. True investors will want to invest in your business only when they see that you have invested in your business.
You must believe first in yourself before you can get others to believe in you.
ARE YOU A GOOD STEWARD?
A steward is a manager or someone entrusted with the responsibility of caring and maintaining other people’s resources, talents and money.
When people invest in your business, are you managing the resources right enough to multiply them?
Lastly, as an entrepreneur you must overcome GREED. Eccl. 11: 12
Greed is excessive desire to get something at all costs. Greed is born out of poverty thinking and fear. Many cannot give into their business because of greed.
God bless you for reading!
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