Top Tips for Raising Business Finance Successfully
August 4, 2008
There is no quick fix with this rather interesting topic. Many women in business and aspiring women entrepreneurs are finding it hard to raise capital for the start or expansion of their business. When it comes down to it, black businesses are even finding it more challenging to raise finance and as a business consultant and coach, I am of the view that the support out there is not adequate to help many women and black owned businesses overcome this hurdle. Therefore, I wonder what is the solution to this challenge facing women and black businesses; how can it be circumvented. There are many reasons for women in business and black owned businesses finding it hard raise finance. They can be summarised as:
- Lack of business skills
- Lack of understanding of the financial market
- Lack of a strong credit history
- Lack of transparency in so far as financial matters are concerned
- Lack of confidence in themselves and their business
- Lack of collateral to limit risk to banks and financial investors
- Lack of a high quality business plan with robust financial projection
- Lack of a credible business team or managerial backing
- Lack of a strong track record to demonstrate ability to service debts or provide health return on investment
How can these challenges be fixed? Here are my top five solutions to fix the problem.
-
Personal education on money matters that will prevent people going into debt in the first place.
- Entrepreneurs should be prepared to learn sound business skills to build their confidence about their business
- Entrepreneurs should work closely with the financial market to understand their needs and their language. After all if the bank or a private investor is going to invest in a business they earn the right to correct information.
- Entrepreneurs should have a firm grasp of financial planning and management techniques. If they fail to do so, they risk being seen as immature in so far as their business skills are concerned.
- Entrepreneurs should be willing to invest in a robust business plan that covers each angle of the business thoroughly. A business plan that is done on the cheap is a show way to get a no thanks response from a financier.
- Entrepreneurs should take very seriously the importance of effective communication.
Financiers will not part with their money simply because you have accounting skills. Nor will they part with their money simply because you have a business plan. The people behind the business matters in their decision and so it is worth finding out how we can help you today. Contact us today for more information. Let me have your comment on the blog post.
Comments
Got something to say?
Podcast Feeds
