4 EFFECTIVE WAYS TO RAISE CAPITAL FOR YOUR BUSINESS

Raising capital to finance a business idea has been one of the major challenges confronting entrepreneurs all over the world. This challenge has caused a lot of business ideas to be aborted. When you search through the internet, you will come across both practicable and non-practicable suggestions on how to raise capital. The fact remains that there is always a solution to every problem and this particular problem is not an exception. 

Normally, I would have done some Google searches to get materials on the solution to this challenge before writing this article, but I decided not to do so as I am quite aware that you must have done that yourself. And if you have, you must have seen options such as; borrowing from friends and family members, taking loans from banks and the likes. So, I won’t attempt to bother you on what you already know and might have even applied.

 I will share the points I have with you below and will have it updated when I come across another tested and trusted way to raise capital for your business quickly.  

1. Write a very convincing standard business plan: This may sound funny but it’s actually part of the process. Put that your idea down on paper and ensure that it is as clear as possible. Explain what you intend to do; the business you intend to go into, the problem you intend to solve through your business, the ways you intend to provide the solutions, where the monetization comes in. Explain in details as many things and as convincingly as possible that pertains to the business in your plan. Peradventure you don’t know how to write a business plan, quickly open another tab right now on your browser and do a Google search on that subject matter and you will get voluminous information on how to do so (I will still post on how to write a business plan later in the future).  
2. Compile a list of potential investors: This is actually where the secret is hidden. You know rich people, you know people that have interest in business or are even business moguls. Some of them might be related or connected to you in one way or the other. Do you know that most of these people are actually investors? Their source of wealth is actually from investments on lucrative businesses. Take a paper and pen and make a list of them all, if they are up to ten or twenty, the better for you. Rank them in order of their tendency to invest in your business based on what you know about them or even based on your instinct. Now select the first three or five that tops your list and move forward to the next stage. 
3. Build relationship with these top potential investors: If you are already in a good relationship with these investors then you are one step ahead. But if you are not, deliberately build a good relationship with these potential investors. If you know them in person, then undertake strategic measures to connect more closely with them. There are numerous ways you can do this depending on the person in question. So you have to study your target investor and identify the approach to use to build a closer relationship. 
4. Meet with your top potential investors: This is the final stage. Your mission here is to submit your business plan to them. But before you do this, you must have communicated to them to an extent to fix an appointment with them. They should already know what you are coming to do. Agree on the venue and ensure to make moves to pay the bill for refreshment if it is a public location such as a restaurant. Even if the potential investor wants to pay the bill, ensure to insist. But this is of course not obtainable when your investor is hosting you in his house.

Your potential investor will definitely engage in a verbal conversation with you especially when he is not in a hurry. So, you should be prepared to do more verbal clarification and convincing more than you did on your business plan. The approval or disapproval of your business plan which of course holds the key to unlock the capital you need for your business lies in your hands. Don’t fail yourself!

I believe that this strategy will work for you if faithfully implemented. Kindly share this article with your friends and contacts using any of the social media buttons below, thanks.

Culled: WISE ENTREPRENEURS

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