By Peter Osalor
Having a great business idea is only the first step in the journey to raising your business empire. Turning your business idea into a money- making venture requires raising the capital necessary to get your blessing running and that represents the next step of thousands of other steps. In starting your own business, the most challenging task you have to face as an entrepreneur is raising money as capital.
The ability to raise money to start a business is one of the tests you must undergo as an entrepreneur. As daunting as it may seem, the challenge of raising money is not as tough as you think. It is no secret that in your quest to raise money to start your business you are bound to face a lot of obstacles. It would be very unfair of me to promise you otherwise. However, the good news is that it can be done as there are some people, some institutions and some organisations willing to look at investing in start – up businesses.
There are many tried and tested ways of raising money to start your business which have been used by many famous entrepreneurs whose businesses have become household names, including Bill Gates (Microsoft), Michael Dell (Dell computers) and Richard Branson (Virgin), to name a few. For maximum success, you would do well to use a combination of different tactics to employ when you want to raise capital for your great business idea.
Using feasibility business Ideas
The first and basic key to raising money is to have a business idea that is feasible, that is practicable, and that is workable. You wonder why? The first question any investor you approach will ask is this: How profitable is your business idea? That is because no investor will want to put his money in a business that is impossible and not viable. They will also want to know the expected return on their investment and the time frame within which to recoup their initial investment. Before you embark on a quest to raise money, carry out a feasibility study to determine the profitability of your business idea.
Using a business plan
Another prerequisite in the process of raising money for your business idea is a good business plan. One of your first moves when you want to source for funds to start your business should be to put a comprehensive business plan. Your business plan will include details of your background, education, training experience and any other personal qualities you possess.
Your personal qualities and experience are often regarded as assets to your business. Your business plan should also explain in detail the modalities of how you are going to use the money you need.
It should also explain in detail your proposed business idea, associated expenditure, the market research undertaken, and your financial projection and so on. Above all, your business plan should describe in detail what makes your business differs from that of your competitors. What will interest your investors the most about your business plan should state precisely what any investor should expect as returns on their investments and also, when and how you are going to pay it.
Personality, Appearance and presentation style
Next thing to consider is your personality, your appearance and your presentation style. When approaching an investor, remember you have only a chance to create an impression in his or her mind.Therefore,you must be conscious of your appearance, don’t appear rough and unkempt and, please, try to look professional. In the game of raising money for your business, appearance matters a lot.
Now to your presentation style: your manner of presentation will determine the success or failure of your quest to raise money for your business idea to your investors with a high level of confidence, because the better you are at communicating your strengths to them, the better your chances of raising money. If you lack communication skills, read up books on the topic.