You Can Get Start-up Capital

 

While obtaining start-up capital is not easy, it is not impossible.  There are many ways to raise money; some are better than others.  For instance, cold calling, or taking out an ad in the local newspaper usually does not work.  You may feel that you will never have a chance to gain any assistance because you have never done this before.  This may be true if you do not learn what is needed to get the capital you need.  Here are some things to consider before you make your presentation to a potential investor.

 

• Know your business.  Do you have a mission statement?  Could you describe the business you are in using one or two sentences

• Have a clear presentation of your product or service.  Make it interesting but to the point.

• Understand your market and present your niche in a positive, honest light.  Who is your competition?  Why would you be better or just as good?  What makes your business so special?

• During your presentation, introduce the qualifications of your management team and their collective experience.  If you have any proof of their qualifications, such as certificates, degrees, this would be a nice added touch.

• Have a simple, clear cash flow analysis.  Can you provide evidence of the potential income that can be achieved in your business?  Remember, the investor is not emotionally tied to your business like you are.  The investor is in this to make money and maybe help someone get started in business.  Their main goal is to make money.

• Know your proposal.  Be flexible.  Make sure that the proposal is in both your best interests.

• Be yourself and try to remain calm during your presentation.  Practice the presentation in front of the mirror, family, or close friends.

• Make sure you ask for the money.  To often, I see great salespeople make a great presentation and not ask for the sale.  Close the deal so to speak.  You must be comfortable with this part of the presentation as well as talking about your business and the dreams you have for it. This is probably the one most important thing you can do to get the money for your business.

 

If you are not comfortable making a presentation to a group of investors, try an individual.  To find people with potential money to invest, network with other businesses, friends, and people that have the money you want.  If you don’t know anyone with money, make your circle of friends bigger to include people with other backgrounds, community positions, money, etc.  To do this, you have to network with the right people.  Get informed about who’s who in your community and surrounding communities.  Remember the world is also getting smaller with the Internet.  You may also find investment sources that have not been tapped into online as well.

 

When going into business, you assume a lot of risk.  There is no guarantee that your business will succeed.  However, the more you arm yourself with the right tools, the better your chances will be to succeed.  Good luck in your business adventures.