How to Finance a Business Start-up, Growth or Acquisition

INTRODUCTION – Do you know that the best creative or innovative idea in the world is yet to be unleashed or invented? Do you know that the world is filled with brilliant ideas that have potential to generate money / profits, create jobs and re-distribute wealth?

Well, if you are one of those that are constantly basking in the euphoria of developing a winning business idea; then you may need to have a rethink because having a good business idea is one thing, but the process of executing and turning your idea into a business opportunity is a different ball game entirely. And this process can never occur without MONEY.

P.S: This is the 2nd course we have published in the Kick-Ass Business Mentorship Academy (KAMMA); A program for serious entrepreneurs that want to learn what it takes to grow from an idea into a private or publicly quoted million dollar company. Admission into this program will cost $497 per year but we are giving Free Lifetime Access to Only 100 Readers of MyTopBusinessideas.com. Click Here Now to Apply for a Free Lifetime Access.

Why I Wrote this Fund Raising Guide

Over the years of running a business and interacting with other business owners / aspiring entrepreneurs, I have come to understand the fact that raising capital will remain the most challenging task for an entrepreneur. And this is the sole reason why I wrote this startup funding guide.

You may have the most brilliant idea in the world, or you have mapped out a formidable expansion plan for your existing business; however, if you cannot raise the needed funds to pursue these ideas or plans, nothing will ever get done.

“There are three components to starting a business. One is the right plan; two is the right team and three is the money. Rarely do these three components come together when starting a business. It’s the duty of an entrepreneur to grab one piece and start the business, the remaining two pieces will be found along the way. Finding the remaining two components may take a year or more than 10 years; the point is, start with what you have.” – Robert Kiyosaki

This Small Business Financing Guide is Like your Ultimate Weapon

Getting funds to start a new business (or expand an existing one) is one of the most difficult challenges you can ever face as an entrepreneur. This is because most of the widely known sources of funding (such as bank loans and venture capital) are highly competitive; running after them is like racing with many other cars on an extremely crowded highway. That is, many businesses, both small and big are fighting hard to get funds from these same sources.

Now, I am not saying you cannot get bank loans or venture capital. But the bitter truth is, you will most likely have to fight through all the clutter for several weeks to months just to get your voice heard. Moreover, your business may not be ripe for these funds, as they are usually reserved for companies that have already reached certain milestones. Yet, only with the needed funds can your business reach those milestones.

So, what should you do rather than waste months to years trying to get funds from these tight sources? The answer is to avoid the highly competitive options. Instead of racing with other cars on the jammed highway, you can choose to take the side streets (provided you can easily navigate your way through them).

What this Business Funding Can Do for You

This is where this book comes into play. It presents many alternative sources for raising funds for your business. It is like your roadmap for navigating the side streets. It will take you off the crowded highway and save you from the frustration of having to compete with many others for funds from the same old financing sources. And it will help you raise your capital quickly from sources that most entrepreneurs don’t even know about.

I understand that you may have heard or known about some (or even most) of these alternative funding options. But if you are still not able to get funds for your business by now, you are having one problem; not knowing how to strategically get the funds out of these sources. So, this course won’t just tell you the names of the side streets, but it will also guide you on how to ply them successfully so that you can get your funds and start (or expand) your business while others are still scrambling around.

In essence, by reading the book, you will discover…..

Little known sources for raising capital for your business

How to easily and strategically raise capital through these little-known sources

How to get bank loans and venture capital (even amidst fierce competition)

and lots more.

Who is this Small Business Financing Guide for?

This course is for you if…

You need funds to start a new business. I mean, one or many promising and lucrative business ideas have been playing in your head and on the pages of your jotter for a long time, and are still begging to be commercialized.

You already run a business and have great ideas for expanding it, but have no funds to implement those ideas.

If you are an aspiring entrepreneur or business owner, then you are more than likely to fall under one of these categories. To help you get your head around the different ways you can finance the launch or growth of your business, I have compiled this course based on my experience and extensive research done by my team. So I advice you read and understand every point in the book, take action, and you will achieve your goals. I wish you all the best.

The Beginner’s Guide to Small Business Financing and Startup Funding

“In the game of entrepreneurship, the process is more important than the goal. When you start building a business, you begin a journey, a process. This process has a beginning and an ending and between the beginning and end are a lot of challenges. You will win only if you remain faithful to the process.” – Rich Dad

TABLE OF CONTENTS

SECTION A – Preparing Yourself

Chapter 1: Evaluation Guide: Is your Business idea Really a Good One?

Most people have too many business ideas in their heads. This chapter will teach you exactly how to identify and focus on one promising business idea.

Chapter 2: Preparing your mindset to deal with the challenges involved with raising capital

This chapter addresses the various skills and characteristics you must possess to be successful in your fund raising quest.

Chapter 3: Crafting a great business plan: why and how

This chapter discusses the importance of a business plan to your fund raising quest and how it can help you get the needed funds to start your business. It also covers details and strategies on how to write a winning business plan that gets the attention of investors.

Chapter 4: Choosing your Path to Fund Raising (Debt Vs. Equity)

This chapter contains about everything you need to know about debt financing and equity financing. You will also learn the sources of both debt and equity financing which one is best for your business.

Chapter 5: Taking the first shot – why and how

This chapter discusses the basics of bootstrapping and the importance of getting some funds from your end; as investors would be skeptical to contribute to your business idea if you have not shown that you are putting something into it yourself. You will also learn a few self financing strategies, its pros and cons, common mistakes associated with it, etc.

SECTION B: Raising Capital Through Equity Financing

Chapter 6: Raising seed capital from family and friends

In this chapter, you will discover the common challenges of raising capital from family and friends. You will also learn a few strategies and techniques you can adopt to successfully get the money from family and friends.

Chapter 7: Raising Capital from Angel Investors

In this chapter, you will learn who angels are, how and where to find them, how to connect and pitch them with your ideas, etc. You will also learn the fundamental principles of raising funds from Angel investors.

Chapter 8: Raising funds from Venture capitalists

In this chapter, you will learn who Venture capitalists are, and their role in startup financing. You will also learn how to pitch VCs, common questions they are likely to ask you; plus the advantages and disadvantages of taking venture capital.

Chapter 9: Taking your company public through IPO

This chapter is strictly for those that think big and love taking on challenges. In this section, we explain the basic concept of taking a company public, the advantages and disadvantages of going public; and the necessary steps you need to take to get your company quoted on the floor of the stock exchange.

SECTION C: Raising Funds Through Debt Financing

Chapter 10: Obtaining Small Business Loans

This chapter briefly highlight the various sources of small business loans (Bank loans, SBA business loans, Government business loans), the advantages and disadvantages of taking business loans and the challenges you are likely to encounter when taking a business loan.

Bank Business Loans – Covers the legal and financial requirements for getting a bank loan, plus the possible questions your banker might ask you before giving you a loan; and how to answer them.

Government Business Loans – Covers techniques for applying for a government business loan, plus the legal and financial requirements for getting a government loan.

SECTION D: OTHER SOURCES OF FUND

Chapter 11: Raising Capital through Crowdfunding

This chapter discusses the basic concept of raising money through crowdfunding, the advantages and disadvantages of crowdfunding; and the challenges you are likely to encounter when raising capital through crowdfunding.

Chapter 12: How to Get a Small Business Grant

This chapter discusses briefly, the basic concept of business grants and highlights the various sources of small business grants (Grants from NGOs, Government business grants).

Chapter 13: How to Raise Funds through Mergers and Acquisitions

This chapter discusses briefly, the basic concept of mergers and acquisitions, the advantages and disadvantages of M&As and challenges you are likely to encounter during mergers and acquisitions. Plus strategies and techniques you can employ to overcome such challenges.

Chapter 14: How to Finance your Business Expansion with Equipment Leasing

In this chapter, you will learn how to successfully apply for an equipment lease, the challenges you are likely to encounter when taking an equipment lease and strategies you can employ to overcome such challenges.

SECTION E: Conclusion – How to Write a Fundraising Proposal

In this section, you will learn how to write mind-blowing loan proposals, partnership proposals, grant proposals, etc. with samples to help).

SECTION A – Preparing Yourself

Chapter 1: Evaluation Guide: Is your Business idea Really a Good One?

CHAPTER ONE – The harsh truth about small business financing and startup funding is that 99% of all businesses that apply for fund gets rejected. WHY? The reason is because their business idea or plan is not worth given a second thought. To successfully get investors attention on your business idea, your idea itself (including your business plan and presentation) must be thought provoking. Now what’s the secret of those that were able to raise the needed funds? What did they do differently? Well, I advice you keep reading.

As entrepreneurs, we have all had the experience: An idea strikes you either during a brainstorming session or when you are watching T.V. Then you do some quick calculations, and you become excited. A new business idea is born. You have just thought of an idea that you believe no one else thought of. And you hope to start making your millions within a few months after the launch. Some people refer to this moment as the “Entrepreneurial Bug”, while others call it the “Entrepreneurial Seizure.”

While some of us have just one or two promising business ideas in our brains, others (those who won’t just stop brainstorming for opportunities) have myriads of them. Now how do you know if that business idea is a winner or a waste of time? If you have many of them, how do you know in advance which one deserves going after and which one will end up as a dud? The answer is simple: “Evaluation.”

After going through the brainstorming stage, you need to face reality and figure out whether your idea is a viable option, and you will need to be thorough in this assessment. This important step essentially determines whether your proposed business will succeed or tank. So, don’t let your excitement and enthusiasm tempt you to skip this step.

Below are 8 simple but powerful self assessment questions to ask yourself when trying to figure out whether your business idea is really worth gambling on:

Factors that makes a business opportunity feasible

How to Evaluate a Business

8 Questions for Evaluating the Profit Potential of your Business ideas or Opportunities

1. Is there a market for it?

Sometimes, your business idea may seem like a great solution. But it won’t succeed if you are the only one who sees it as such. If you are unable to identify a customer base beyond yourself, then it’s a warning sign that your idea will most likely fail. To assess the marketability of your business idea, you need to conduct extensive market research and find out if people would be interested in your proposed product or service.

How big is the current market for your proposed business idea?

Is it an emerging market or a mature one?

Are you in a new or mature category?

Who are your potential customers?

Do they really need your proposed product or service?

What is the competition like?

You can answer these questions by conducting online research, meeting with industry players, networking with others, and attending trade shows and exhibitions. Your answers will give you a big advantage in getting a handle on the opportunities within the market. They will also help you figure out if your initial assumptions about your proposed product or service are true.

No matter how brilliant your idea may be, only paying customers can validate it and determine if it has great chances of success. Your “brilliant” business idea remains “just an idea” until you have paying customers attached to it. While anyone can discredit a simple idea, no one can discredit paying customers.

2. Does your idea solve a problem?

If a problem affects you and your friends, relatives, co-workers, and so on, then chances are high that it affects many other people you don’t know as well. And if your business idea can help you solve the problem, then it can solve the same problem for others as well. This is a basic way of testing the relevance of your business idea.

But there are many other indicators you will need to study in order to know if many people have the problem you intend to solve and if your product can really solve it. The demand for similar products is a very good such indicator. The frequency at which people come down with the problem is another.

The market may already be filled with products or services that solve the same problem. What you should focus on is how to solve the problem even more easily with your own offer. If your idea presents a simpler way to solve a problem, you will quickly attract attention and profit.

3. Is your idea unique?

You have a unique business idea when you try to research the concept and discover that nobody else has ever done it. Having such an idea means customers would readily jump at your offer, and you won’t face any challenges from the competition. However, the uniqueness of your business idea may not necessarily signal high chances of success. In fact, it may be a warning signal that there is no market for your proposed product or service, or that the business isn’t profitable.

“Pretty much, Apple and Dell are the only ones in this industry making money. They make it by being Wal-Mart, we make it by innovation.” – Steve Jobs

Must your business idea be unique? The answer is no. Your concept doesn’t have to be unique. But you must be able to add a unique touch to it by looking at your competitors’ weaknesses and improving on them. This could be by adding more value for the same price, offering a premium version of their product, or some other strategy. If you cannot distinguish your business idea this way, you won’t survive the rigor of competition.

Take for instance Wal-Mart. When Sam Walton established Wal-Mart, there were other convenience and retail stores around; selling probably the same commodities. However, Sam Walton was able to distinguish his brand with a unique selling point “Always Low Price” and today, Wal-Mart is one of the world’s largest retail chain.

So, if your business concept isn’t your original idea, that’s just fine. No problems. The most important thing is finding a unique angle to the product idea and spicing it up with unique selling points that can intimidate the competition. If you have great ideas for achieving this, thumbs up!

4. What is the price point?

Although most business ideas seek to solve certain problems, only great and promising ideas do it in a way that is less expensive than what the market will endure. Once you are convinced that your business idea solves one or more problems, you still need to determine not only the value that it delivers, but also what people would be willing to pay for that value.

If your proposition is badly priced, your customers will be decidedly unenthusiastic about buying from you. So make sure you look at your potential customers’ spending habits and earning power to determine how much they will be willing to pay and how often they will buy. Here are other factors you should consider when fixing your product price.

Being a new player in the market, you would need to start out by offering your product or service at prices that would give your rivals sleepless nights. This is one of the strategies you can use to quickly attract customers to your business. If your costs are too high, you will find it hard to break into the market, and you won’t make any profit. So, start small and keep your overhead to the possible minimum.

A good example of an entrepreneur that used this strategy successfully was Henry Ford. Henry Ford was not the first car manufacturer, neither was his car design the most beautiful. Before the coming of Henry Ford, cars were exclusively for the rich. But Henry Ford came with a mission “To Democratize the Automobile” and make it readily available for the masses. Today, the Ford Motors Corporation is a billion dollar company. Thanks to just one smart pricing strategy.

5. Will investors be interested?

Do you know why this question is important? It is important because it is related to your fund-seeking mission. One of the best indicators of your business idea’s potential is the amount of interest it generates from outside investors. If your idea seems like something that would prompt other individuals and businesses to clamor at your door to gain an audience, then you can rest assured that you are probably sitting on a lucrative proposition.

Remember, a business idea may be promising in that chances are high that it will sell like wild. But you won’t get funds from investors if your idea can’t readily show off its profitability to them. So, if you are the only one who seems to understand the marketability of your idea, then you must strive to make it obvious to investors as well. Or else, nobody will invest in your idea.

6. Is your idea hard to duplicate?

“If an innovative piece of software comes along, Microsoft copies it and makes it part of Windows. This is not innovation; this is the end of innovation.” – Larry Ellison

If your great business idea has low entry barriers, you can be sure that imitators will soon flock in, and you will be facing huge competition. This is so true in today’s business world. A typical scenario of companies competing with stolen ideas can be found in the software industry. A business idea should have strong barriers or differentiators to help ward off the competition. If yours isn’t too good in this regard, jettison it altogether, or think of ways to make it hard to duplicate.

7. Can your idea last? Is it scalable?

The most successful business ideas are those that cater to people over a long period of time. You need to picture your proposed business in two, three, five, and 10 years time to determine if your product or service would still be relevant. This is the reason why I stick with evergreen niche businesses.

Never run after trends and fads because those can disappear overnight. If you are confident that your idea will continue to be relevant, will remain the best answer to your customers’ problems, and will continue to bring in more revenue for your business in the years ahead, then you have a great one under your belt.

8. What is your driving force?

Your determination to solve your customer’s problems should be your driving force. While it’s just natural for you (and every other entrepreneur) to start a business with profit in mind, you shouldn’t start your business purely to make money. You must be absolutely passionate about your proposition and committed to steering it through the good and bad times. If your focus on profit masks this, then there’s a good chance your business idea will fail.

Bottom line

Many businesses have failed not because of lack of funds, but because of lack of knowledge. Only few things could be sadder than working your butts off to raise funds for your business, only for your idea to crash along the line because you didn’t test it well enough before taking a plunge. Even if you have tons of business ideas begging to be launched, don’t just pick one based on what you think people should buy. You must evaluate each of them to find out what people really want to buy or actually do buy.

If you think this evaluation isn’t necessary, just imagine how you’d feel after spending that huge amount (required to launch your idea) and not generating any sales or revenue; simply because you didn’t do your home work well.

In the end, the best indicator of a good business idea is a proven market with room for growth, populated by people willing and able to pay for something unique or different that helps them make their lives better, easier or happier in some way. A great idea is the idea that promises to do the usual in an unusual, unique or different way that wins customers and keeps them coming back for more.

Chapter Two: Preparing your mind to deal with the challenges involved with raising capital

CHAPTER TWO: Part A – Raising capital for your startup or funds for your small business expansion plans is no doubt one of the most challenging aspects of starting or growing a business. This is why you must be adequately prepared for the task.

Seriously, raising money for your business is not a piece of cake; as you almost have to practically beg and convince potential investors or lenders to trust you with their hard earned money. There are more-than-countable stories of entrepreneurs and small business owners becoming discouraged and frustrated by the harsh challenges they are faced with while trying to raise funds for their businesses.

“Getting rich begins with the right mindset, the right words and the right plan.” – Robert Kiyosaki

These challenges include the amount of time it takes to secure the required funds, the crippling terms and conditions, the paper work involved, the rejections, and the lack of linearity and progress checkpoints over the course of the fund raising process. Now, let us go into more detail on some of the commonest challenges entrepreneurs face during the fund raising process.

“Never worry about tomorrow. Tomorrow, you might inherit a million dollars or be run over by a truck. Or inherit a million dollars and be run over by a truck.” – The Mafia Manager

2 Common Challenges Entrepreneurs During the Funding Raising Process

1. The “maybe” situation

It is very common for a prospective investor, either an individual or a venture firm to show great interest in an entrepreneur’s idea after the initial review, only to leave the entrepreneur guessing afterwards by not giving any definitive feedback (positive or negative) on the investment proposition. No entrepreneur would find this an easy experience.

Because they “have the gold” and “make the rules,” investors demand that you, being the entrepreneur, provide a very specific timeline in regards to growth metrics and return on their prospective investment. But they usually don’t reciprocate this by making quick and specific investment decisions. Why should they be hasty about investing in your business, when there are other promising business opportunities out there.

2. Lack of urgency

Another great challenge in raising funds for a new or existing business is the lack of natural urgency. This is usually because the number of entrepreneurs seeking to market their ideas by far exceeds that of ready investors. And so, investors have their tables filled with several investment proposals and usually need enough time to go through them and scrutinize the opportunities that each one presents.

“The rich invest in time, the poor invest in money.” – Warren Buffett

Also, most investors / lenders are busy individuals with many corporate and personal issues to attend to; thus leaving them with less time to go through the numerous business plan they receive daily. So get their attention, your business plan and email pitch must be exceptional and attention grabbing.

With the above in mind, let’s now look at the qualities you must have in order to cope with the various challenges involved in the fund raising process. These following qualities will help you level the playing field, mitigate the balance of power, and accelerate the fundraising process.

How to Prepare yourself for the Challenges of Startup Funding

Part B: Four Qualities or Traits You Need to Successfully Raise Startup FUND

CHAPTER TWO: Part B – What are the basic traits possessed by successful fund raisers. Every entrepreneur knows that there’s more to raising funds than simply stretching out your hand to ask for money. To successfully raise capital, there are certain traits, characteristics or qualities that you must possess. Your ability to develop and use these traits tactically will go a long way to determine if you will get the money you need or not.

In this write up, I will be highlighting the basic qualities or traits you need to succeed in the game of small business financing and fund raising. I will also point out the exact way each trait can benefit you in your quest to raise money.

4 Qualities or Traits You Need to Successfully Raise Startup Funds

1. Strong determination

“Without passion, you don’t have energy. Without energy, you have nothing.” – Warren Buffett

This is the most important quality that you need to succeed in your fund raising quest. Without strong determination, you would quickly give up after facing one or two of the harrowing challenges that accompany the process.

“Passion keeps you going, when the going gets tough.” – Warren Buffett

Determination is a product of passion and self belief. When you are passionate about what you do and you strongly belief in the workability of your product, determination follows. Determination toughens your skin towards rejection, it keeps your eyes fixed on your long-term goals and blinded to the harsh challenges that you will encounter along the way. It helps you stay on track and fuels you with optimism.

2. Patience

“Patience; this is the greatest business asset. Wait for the right time to make your moves.” – J. Paul Getty

As stated earlier, some investors or loan-issuing institutions could be very annoying. They may take too long to review and respond to your proposal, leaving you to fall sick of suspense and anxiety. Worse, they may reject your proposal for flimsy reasons even after showing great enthusiasm initially.

As far as raising funds for your business is concerned, you are at the mercy of these investors or loan-issuers; even though you own the business idea or concept. This is more true especially when you are a first time entrepreneur without much business experience or track record. So, you must be ready to play along with them if you really want to succeed.

“The world belongs to the patient man.” – The Mafia Manager

Some investors would eventually buy your idea after making you believe that your business idea is not worth a dime; or doing all sorts of things that would make you think they are not interested. You never can tell what an investor’s final decision would be. So, don’t blow your chances by acting or reacting unprofessionally. Give potential investors or creditors all the time they need to make a decision that satisfies them.

“If you are the anvil, be patient. If you are the hammer; strike.” – The Mafia Manager

Also, you should never try to force your idea down an investor’s throat, as this will send wrong signals that may make them nurse doubts over your idea. If your idea is promising, you will get the funds you need. If you get a negative response, then take it in good faith. It may not necessarily mean that your idea isn’t good. It may be because the investor or creditor doesn’t just have enough funds to pump into your idea, or your idea is in his / her industry of competence.

3. Business sense

“To succeed in business, to reach the top, an individual must know all that is possible to know about that business.” – J. Paul Getty

The next trait investors look out for in entrepreneurs seeking funding is passion and core competence. No investor / lender would want to put money in a fly-by-night idea; they want to put money in a business that the entrepreneur is truly passionate about. Most importantly, investors / lenders want to put money in a business where you, the entrepreneur is willing to work for free; at least to some certain extent.

Also, you must be very knowledgeable about the business you are raising funds for. In fact, you must know your business industry like the back of your hand; that even if you are awakened from sleep and questioned about your business, you will deliver without stuttering.

“See thou a man diligent in his business? He shall stand before kings; he shall not stand before vain men.” – Proverbs 22: 29

4. Your sales skills

“The ability to sell is the number one skill in business. If you cannot sell, don’t bother thinking about becoming a business owner.” – Rich Dad

The last and most important key to your fund raising success is your ability to sell, and this prevails over most other factors. Now why must you learn how to sell? Selling is a crucial skill that you must have as an entrepreneur, and this is because when it comes to raising funds, the commonest question on the lips or in the minds of investors and creditors is, “What are you selling?”

In addition to introducing your business idea and your plans for actualizing it, you must be able to explain how the investor or creditor will gain from the deal. Investors want a healthy return on their investment. And though they know you cannot be 100% accurate, they want an estimate of how much profit they will get back from the business if they invest their money.

To up your chances of getting the funds you need, you must be able to brilliantly present the business model as well as its profitability. This is why sales, persuasion and presentation skills are very important to the fund raising process. Here’s how to sell your business idea to investors.

Part C: Six Additional Action Tips for Successful Startup Fund Raising

CHAPTER TWO: Part C – In addition to having the qualities or traits listed in Part B of this chapter, I have highlighted six additional measures you can adopt or implement to further prepare yourself for the harsh challenges you will face while trying to raise funds for your business. Below are the six additional action tips.

1. Plan the fund-raising exercise itself

After you are done with writing your business plan, it is advisable you invest time and effort to plan the fund raising exercise thoroughly. A good way to start your planning process is to make a list of investors and creditors that you plan approach as well as their contact details.

Also, you should document the total amount you are looking at raising and the deadline by which you hope to have gotten the funds you need. Such a plan would help you act with time and remain focused.

2. Be analytical

Most investors and creditors won’t trust your idea or business until you show them detailed analysis of the concept as well as your projections. Don’t just state facts; you must use figures to drive home your points and add weight to your projections. You must also take your time to research extensively about your business idea, and have a well-written business plan (you will learn how to craft a good business plan in the next chapter). Investors will only invest in what they know and understand.

3. Be succinct

Without excluding any relevant details, you must be able to present your proposition in as few words as possible. Most investors or lenders are very busy individuals who always have multiple tasks to handle. So, you would only bore them and kill their interest in your idea if they would need hours of reading to understand your proposal.

If you are called upon to present your business plan, be precise and go straight to the point. After presenting your overview / summary, you should then proceed to answer any question your investors / lenders. Only focus on areas your investors care or want to know about your business.

4. Be realistic

It is also important that you set a reasonable deadline for your fund-raising plan. Always keep in mind that investors and creditors would need some time to analyze your idea and ruminate over it before giving their feedback. So, never expect them to respond with hours or few days. However, it is advisable and wise to let your potential investors / lenders know that there is a expected time range, within which you expect their feedback.

5. Know the right financing options and stick with them

If you are raising startup capital for your business, then chances are that you won’t be able to secure loans from most banks and some other money-lending institutions because these institutions want a certain degree of safety, track record, credibility and competence on the part of the fund raising entrepreneur. So keeping these “no-go” areas out of your list of options will save your time and save you from frustration, as you will focus more on creditors and investors that are more likely to buy your idea.

6. Be clear on what you want to achieve

The most brilliant business idea in the world can come across as a ruse if it’s presented in a way that is not clear enough. So, clarity is a very important factor that can spell the success or failure of your fund-raising quest. In written proposals, try to use pictures only if they would make your ideas clearer. In presentations, you can add animations and videos as well as graphs and other illustrations. And when you are presenting your ideas orally, speak clearly.

Bottom line

As a final note, I want you to know that raising capital does not have to be a laborious, drawn out affair. Though, it’s not an easy task, you can make yours easier by keeping to the points raised in this chapter. By following the action tips stated above, plus a little touch of creativity on your part; you will be able to provide investors and lenders with confidence, and all the money you need will flow over to you.

How To Finance a Business Start-up, Growth or Acquisition