7 Simple Steps for Entrepreneurs in Raising Money for Business

Sharing is Caring!


The most important aspect of building a company is raising money. Without money, there will be no business at all. But the problem is not money—the problem is that many people in business have not gone to the school of raising money for business.

Business requires money—business requires cash—business requires capital. Without money, there will be no business. That means the most important skill that entrepreneurs must have and continually develop is the skill of raising money for business.

Author of Rich Dad’s Guide to Investing, Robert T. Kiyosaki, said, “The most important job of an entrepreneur is raising capital.” That means what an entrepreneur must keep doing on day-to-day basis for the survival and success of a business is continually finding better, faster and cheaper ways of raising money for business development.

Please don’t misunderstand me! This doesn’t mean that entrepreneurs must always go to investors begging for their money. No! Entrepreneurs must always and continually be raising money for business from their customers, employees, partners and investors.

The day the entrepreneur stops raising money for business development, the business will begin to suffer as a result of it. Every day a business opens its doors online or offline is a time of raising money for business development.

You see, the problem with many entrepreneurs is that they think that you only raise money when you want to start a business. That’s where they miss it! In fact, you raise more money for business when the business is stable, flamboyant and doing well.

Are you in business or starting a business? Use our business plan template to research, analyze and develop a strategic business plan for your business.

All entrepreneurs must understand that they are in the business of raising money for business. That is what you must do 24/7 for the rest of your life and as long as the business exits. The day the business fails to raise money and begins to lose money is the day the business will begin to go down.

Well, so what are the steps for raising money for business development on continual basis? Do what you did at the start for the rest of the business life! What is that?

When you started the business, what did you do?

  1. You found a viable business opportunity
  2. You wrote a business plan
  3. You assembled a business team
  4. You looked for investors
  5. You earn the trust of your investors.
  6. You made presentation to those investors
  7. You followed up on the presentation to investors

These seven steps (7) must remain at the core of the business as long as the business exits. However, the process must be repeated differently at different stages of the business. It must be implemented with precision, care and diligence to deliver results.

#1: Look for Viable Business Opportunity

The first quality of an entrepreneur is to see opportunity in every problem. True entrepreneurs see problems as opportunities. The make money out of things people murmur, complain and talk about. They find viable business opportunities from people’s problems.

To keep raising money for business development, you must continually be on the lookout for viable business opportunities. You must always be looking for new market and product openings. Find new, faster, better and cheaper ways of making money from your customer’s problems!

#2: Write a Business Plan

Many amateur entrepreneurs write business plans to start a business. But what they fail to do is to write another business plan to grow and raise money for the business. A business plan is often see as a tool to be used at the start of the business. But a business plan is more than that!

If you dream of growing and raising money for business development, then write another business plan. If the first business plan was able to raise money to start the business, the second business plan must raise money to grow the business. See a business plan as a tool for raising money for business!

Are you in business or starting a business? Use our business plan template to research, analyze and develop a strategic business plan for your business.

#3: Assemble a Wining Business Team

Once you have your business plan, then you must assemble a business team to convert the business plan to reality. The job of your business team is simple: to maximize the viable business opportunity you found to solve problems for your customers and raise money for the business.

Image Source: Mouzapp

 

A winning business team will always whether all the storms and make the business successful. Winning business teams share the same core values, mission, vision, goals, commitment and dedication to make the business win in the marketplace.

If you’re going to be raising money for business development, then you must be careful the team behind your business. As Jim Collins rightly said, people are not your greatest asset, the right people are!

#4: Look for Investors

Investors are people who invest their resources to grow the business. They believe and trust in the business enough so that they part their money to buy the shares of the business. They commit their money for the development of the business in exchange for shares.

As the business grows, you must find other ways of raising money for business development instead of the initial investors. You must focus on raising money for business development through your customers by serving and pleasing them.

Image: Virgin-Looking Sources of Capital

You must raise money from your employees by making them serve the customers. You must raise money from your managers by making them manage the customers well. You must raise money from your directors by making them make better business decisions for business development!

#5: Earn the Trust of Your Investors

You really have to understand that the most important thing in your business is not the assets but the trust of your investors, partners, creditors, suppliers, customers and employees. People do business with people they trust.

Once people trust you, they will be willing to invest in your business. The way to do that is to completely be genuine in all your business dealings and serve the best way possible. Maintain and keep integrity at all levels with your investors, customer, directors, partners, managers, suppliers, employees and all others.

#6: You Make Persuasive Presentations to Your Investors

You can’t raise money by having a business plan. You raise money by using a business plan to make persuasive presentation to your investors. You develop an elevator speech that can be delivered in 5 minutes or less!

Make persuasive business presentation to raise money.

Then you pitch your investors, ask questions and answer questions. You give them the business plan to review and finally make their decisions. And as the business grows, you will be dealing different kinds of investors such as your customers, suppliers, creditors and banks.

You have to have a business proposal to win customers, get more suppliers and get assistance from the banks. You must then make persuasive presentation to these groups of people and eventually raise money for your business at every stage of the business.

#7: You follow up on Investors

Life is not easy. So don’t expect anything to be easy for you in your business. It is only foolish and inexperience people who expects business to be easy. If it were to be easy every employee would been self-employed and would have no need of working for you.

Raising money for business development is not an easy thing. It requires focus, consistency and dedication. This is the reason you have to follow up after each business presentation.

You have to follow up you customers to make the sale. You have to follow up on your suppliers to get the goods. You have to follow up on your employees to ensure the job is done right. You have to follow up on your managers to ensure the business is managed well!

Don’t leave anything to chance. Nothing will happen on its own accord. As the entrepreneur, always remember that your number responsibility is raising money for business development. When you do this well at each and every stage of your business cycle, your business will whether all the storms and succeed.

If you have any questions, comments and suggestions kindly leave in the comments below.

Any way, if you need a business plan, business proposal or business contract document to win a business deal, kindly get in touch. We’re here to help you in raising money for business development.

Talk To Us

Email: info@expandgh.com

Tel: +233 2228133

Mobile: +233 548334499

WhatsApp: +233 548334499

Do you want to use digital marketing to grow your business? Subscribe for digital marketing updates for free!