Life is reluctant to hand over fortune and responsibility to someone who messes up his or her pay cheque. But assume responsibility for keeping score of your financial life and you have taken a major step to be trusted with a life of abundance.
- Jim Rohn
The thrust of my discussion last month was the benefits of being your own boss. This week, I want to share with you perhaps the greatest step you need to take to become your own boss: raising money for your business. A friend of mine recently shared his experience with me on how he started his publishing business and I thought I should also share it with you, too.
A few years ago when he wanted to start the business, he approached about four banks with a well-packaged proposal, asking for financial intervention. All the four banks turned down his proposal: they all considered media business a very risky venture that should not be touched even with a long pole.
But my friend believed so passionately in the business and, with the assistance of his shareholders, started operation three years ago with the little money available. Today, the media company is a very prosperous one. And you know what, managing directors of banks now knock at his door either asking him to come and take loan or want to do business with the company.
I have noticed that at the point of raising money for business ideas, most people’s dreams die. You must approach business with success mentality and never let go of that mentality. It is critical to your ability to source funds.
Sometimes we fall into the trap of thinking that wealth is equal to capital and that without capital, we cannot start business. Always think of what God says: “Thou shall remember the Lord thy God for it is He that giveth thee power to get wealth.” - Deut.18: 8.
The interpretation of this is that there is something more than money. If capital which is money is the most critical thing that you need, God would have written there, “It is God who gives you capital to get wealth.” Some other people say it is because they have no connection, so He said, I should have written there that it is God that gives you connection to get wealth.
Capital and connection flow in one direction and it is in the direction of power and ability that He has given us.
Remember, God did not have a dime in His pocket, yet He created the whole world, and I concluded, if having money is what makes a person rich, then God was poor. But of course, God is not poor and that also means we are not poor because we were created in His image. We can replicate what God did: Creating something out of nothing.
The basic tools God had to work with were invisible things which are more powerful than material things. Money is a material thing; the invisible things are the words of God. God had a dream.
In his mind, he saw crops, lake, vegetation, flowers, animals and man. What God saw were what He spoke out.
Then it occurred to me that there is nothing man has created that had not existed as a thought in somebody’s mind. Therefore the critical requirement for your being able to attract capital/money is a sound idea.
Pro means For or Towards
Provision is something you get towards or for the vision. It is vision that attracts funds into your life, and until you have a sound business idea, you have not started your search for wealth. Start with a sound business idea, believe passionately in the idea and you would be surprised at how opportunities that are relevant to your idea would flow in your direction.
The starting point is a powerful business idea. With a powerful idea you are not poor. God did not create money; he created wealth. Ideas are more powerful than cash. As it has been discovered in the business world the poor man is the one that lacks a sound idea.
Attracting Funds
If you must raise money for your business, there are certain steps you must take:
Package a business plan. You need to clearly document your plan and this must contain the business idea you want to sell, the viability of the plan, market review, competitor analysis , how you plan to spend the money and of course the expected return for those who would put their money into your business.
Your business plan should also accommodate your projected cost, anticipated incomes for the first 3 -5 years, the profit and loss account for an existing business.
State the benefit that your investors stand to gain. You can handle this by offering them shares, and making them members of the board of directors. (Part ownership is forever).
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It is important to note that when you are estimating your cost, it is better to use figures on the higher side. Under-funding kills business. It is better to play safe.
Think about packaging. Sometimes a good idea badly packaged can cost you fortune. After putting your idea together, look for design experts who can assist you put the proposal in a form that would be appealing to the prospective subscribers. This will ensue that at least, they look into your proposal. And other things may follow.
Money brokers. There are many ways of going about looking for investors once you have an idea. There are people who know those who have the money and they know those who have the idea. They can connect these two people and get their commission.
Be very reluctant to borrow
If you have come to the point where you cannot do without borrowing, then you are qualified to borrow. You must have developed ability to read financial statements. You must develop management skills to be able to manage debts. Get sound ideas.
To raise capital, be ready to exploit ideas. Learn to pray. God has a unique source of supply for each person. Jesus told Peter, “Get down to the river, catch a fish, you will find money in his mouth.” Peter was a fisherman and Jesus knew that telling him something related to fish would make sense to him.
God knows the best financing arrangement that is good for you; but you must put in your best before He can bless your efforts.
While sourcing funds, maintain your dignity
If you will do business, you must have determination and be very persistent, because in sourcing funds, you will encounter a lot of disappointments. You must develop the ability to withstand rejections. You will discover few of those who rejected you initially may be your eventual financiers if you persist. And please don’t be too desperate to raise money. God will always arrange financial opportunities necessary to fulfill your dream.
Where else can you raise money?
Your savings: It is the best way to start. Start with your own money. Usually people you are approaching for money would want to know your own level of personal commitment in the business.
Your assets: Buy things that appreciate in value, paper assets, real estate, buy stocks, fixed assets. When you need money, you can sell some of these things to finance your idea.
Friends and relations: Keep a good track record. Remember the most critical factor is your vision. Money flows in the direction of vision. Until someone gets a vision he is not likely to attract required finances.
It is easier to raise a small amount of money from several people than raising a large sum of money from one person. The bigger the amount you want, the riskier it is for the person you want to get the money from. You have to be determined. Money is not difficult to get, it depends on your mindset.
BY ADEYEMI
