FINANCING YOUR BUSINESS
Business financing is raising the necessary capital to start or expand a business. Building a business requires capital-whether it is your own or other people’s money, you will need capital. Without access to capital, great ideas die and great profitable businesses go bankrupt. The entrepreneur’s ability to access financing is key to his or her success. It is not possible for every entrepreneur to self-finance and even if you start with self-financing, growth sometimes makes it difficult to continue doing so comfortably. Here are some things to consider when it comes to financing your business;
Seek advice; You do not have to be an expert in business financing but you can consider talking to a mentor, a business coach or a consultant. This should be someone with expertise in business financing who can guide you on the best form of financing for you.
Have a written business plan; Though it is not impossible to raise money without a business plan, a written plan allows for investors and lenders to confirm that you have a viable business with a clear business strategy. It is therefore important to have a written business plan.
Keep expenses to a minimum; Remember that self-financing is the best and keeping your expenses to a minimum makes it easier for you to self-finance. And even when you need external capital, it keeps the capital you need to a minimum.
Use your own savings and assets; What do you have in your hand? Don’t be quick to seek external capital, first use what you have. Furthermore, your ability to demonstrate that you have invested your own money is key to getting the trust of investors and lenders.
Leverage your personal network; Consider who you know and the relationships you have that can help tap into financing. The key to success is not just what you know, but who you know.
Reflection
Ask, and it will be given unto you; seek and you will find; knock, and it will be opened for you. For everyone who asks receives, and he who seeks finds, and to him who knocks it will be opened. -Mathew 7:7-8
Mary Kamore is the Lead Consultant M_OliveS Mentors