Funding A business- how to get a ‘YES’- Part 2
February 25, 2010
Most businesses owners and aspiring entrepreneurs are to find out how they can fund their business but they have limited understanding of the psychological dimension of investors and the banks. Funding a business, traditionally have been led by accountants who in their roles will normally handle financial matters in business. As a result entrepreneurs who are not financially savvy will tend to rely on finance experts to handle matters relating to funding their business. This is not a bad thing but it is always wise to learn a bit about money matters because it is the life blood of a business. Get this wrong and you will be doomed. In this article I am going to share two top tips you need to know about funding your business. I am assuming you need third party funding which can take the form of grants, business loans or equity finance. To find out about the pros and cons of the different financing options, you simply need to download a free copy of my book where you will get as much information on this subject. For now, lets turn our attention to my tips.
Tip No 1. You need a business plan and you need one that is robust with financial forecasts included in the form of profit and loss, balance sheet and cashflow. Your financial forecast should have key financial indicators which accountants call ratio analysis. I have seen business plans that only consist of financial figures. This is not a business plan it is merely a financial plan. Do not make the same mistake. Your business plan must provide details about your business, your vision, mission and strategic objectives. It must also provide details about your target market, marketing and sales strategy. You want to ensure the plan is compelling and by compelling I mean really persuasive and influential. My company helps entrepreneurs put together compelling business plan.
Tip No 2 . You certainly want to be able to explain your business plan to potential lenders and investors confidently. If you can’t do this, you will rapidly lose their trust. Lenders and investors want to know you have a team of experts in the business, that will support the delivery of the plan (this does not mean they are your staff) but equally if you own the business, they expect that you should be able to explain you business plan to them with confidence. You may call upon the professional accountant as many do to explain the figures at formal meetings. However, as the owner of the business, if you can explain the figures, you will even grasp their attention very quickly. Presenting to investors and lenders is all about influencing other people to do what you want them to do. Don’t forget this salient point. Do all you can to influence lenders or investors to part with their money by taking the necessary steps to be well informed about every aspects of your business plan. Stay clear from cheap plans that will ultimately lack in quality and don’t achieve your goals. Whether you are in business or starting a business, there are some expenses you will have to incur and if you fail to do so, your business dies. Sorry I am being blatantly honest with you as I want you to succeed.
Sheila Elliott is a business start-up and development expert offering group and one to one coaching as well as financial consultancy and training sessions. She is the founder of Business Services Support Limited and the author of My Business Is My Business- Learn How To Earn A Fortune. For more information about are free articles visit, http://www.businessservicessupport.com
Funding A business- how to get a ‘YES’
February 25, 2010
This is part one of my tips for funding a business successfully. Having worked for so many years with businesses and aspiring entrepreneurs seeking finance, it has come to my attention that there is one common problem that many find difficult to manage when faced with the subject of raising finance for business. Many are of the view that they should beg for the money when banks and investors are fully aware that their financial wealth is not dependent on the amount of cash hoarded in their bank account but rather the quality of investment they make with their money.
The bottom line is, investors and banks do not make money keeping it in their safe. They make money when it is invested in the right soil with high potential for growth in positive cash flow and profit. This means that banks and investors are perpetually seeking opportunities to invest in the form of business loans, equity or a blend of both. The question now is, what should an entrepreneur do to lay their hands on this cash?
The ability to influence and persuade lenders or investors to follow your vision calls for a respectable amount of insight and capacity to press the right emotional triggers during social intercourse with them, whether on a frequent basis or not. Wrong use of language or expressions can do a great deal of damage to a business trying to raise finance. It is therefore important to seek the help and support of experience and qualified advisors who frequently interact in the lingo of investors and the banks. To do otherwise will only expose you and your business to the risk of not securing the much needed finance for your business.
One of the biggest myths that I have come across many times, is the DIY mentality in the areas of writing a solid business plan for business start-up, improvement or expansion. Some entrepreneurs will say that they have read books and that qualifies them to right a solid plan. The first time reality hit them, is when they approached a potential investor or bank for finance, and then get quiz on their business plans, only to find that there are so many holes that have not been addressed. It is always a shame when this happens.
So here are some tips to help you raise finance for your business.
1. Be clear about the amount of finance you are looking for. There is nothing worst than being ambivalent about how much you need when faced with a potential investor or lender.
2. Be clear about what you want the money for. No wise investor or lender will hand over their cash when you are not sure what you want the money for. It is always advisable you have a clear breakdown of how you expect to use the money, with clear estimates of costs of resources you plan to purchase. It might be that your cost estimate may change with time, as inflation is outside the control of your business. Be ready to amend your estimates in your business plan if it changes before you meet with a potential investor.
Now watch out for part 2 where I will cover my remaining five top tips.
Sheila Elliott is a business start-up and development expert offering group and one to one coaching as well as financial consultancy and training sessions. She is the founder of Business Services Support Limited and the author of My Business Is My Business- Learn How To Earn A Fortune. For more information about are free articles visit, http://www.businessservicessupport.com and http://www.sheilaelliott.com
Funding A business- how to get a ‘YES’
Most businesses owners and aspiring entrepreneurs are to find out how they can fund their business but they have limited understanding of the psychological dimension of investors and the banks. Funding a business, traditionally have been led by accountants who in their roles will normally handle financial matters in business. As a result entrepreneurs who are not financially savvy will tend to rely on finance experts to handle matters relating to funding their business. This is not a bad thing but it is always wise to learn a bit about money matters because it is the life blood of a business. Get this wrong and you will be doomed. In this article I am going to share two top tips you need to know about funding your business. I am assuming you need third party funding which can take the form of grants, business loans or equity finance. To find out about the pros and cons of the different financing options, you simply need to download a free copy of my book where you will get as much information on this subject. For now, lets turn our attention to my tips.
Tip No 1. You need a business plan and you need one that is robust with financial forecasts included in the form of profit and loss, balance sheet and cashflow. Your financial forecast should have key financial indicators which accountants call ratio analysis. I have seen business plans that only consist of financial figures. This is not a business plan it is merely a financial plan. Do not make the same mistake. Your business plan must provide details about your business, your vision, mission and strategic objectives. It must also provide details about your target market, marketing and sales strategy. You want to ensure the plan is compelling and by compelling I mean really persuasive and influential. My company helps entrepreneurs put together compelling business plan.
Tip No 2 . You certainly want to be able to explain your business plan to potential lenders and investors confidently. If you can’t do this, you will rapidly lose their trust. Lenders and investors want to know you have a team of experts in the business, that will support the delivery of the plan (this does not mean they are your staff) but equally if you own the business, they expect that you should be able to explain you business plan to them with confidence. You may call upon the professional accountant as many do to explain the figures at formal meetings. However, as the owner of the business, if you can explain the figures, you will even grasp their attention very quickly. Presenting to investors and lenders is all about influencing other people to do what you want them to do. Don’t forget this salient point. Do all you can to influence lenders or investors to part with their money by taking the necessary steps to be well informed about every aspects of your business plan. Stay clear from cheap plans that will ultimately lack in quality and don’t achieve your goals. Whether you are in business or starting a business, there are some expenses you will have to incur and if you fail to do so, your business dies. Sorry I am being blatantly honest with you as I want you to succeed.
Sheila Elliott is a business start-up and development expert offering group and one to one coaching as well as financial consultancy and training sessions. She is the founder of Business Services Support Limited and the author of My Business Is My Business- Learn How To Earn A Fortune. For more information about are free articles visit, http://www.businessservicessupport.com and http://www.sheilaelliott.com
In this article, you are going to find three top tips on funding a business. You may have read my earlier articles and you will see that this is just a continuation of others.
Tip No 1
Make sure that you present yourself well, when you meet with investors and lenders. The way you dress and speak matters. Every step of the way you are being observed. Your presentation must be compelling. This is why we provide training seminars in financing your business to help you develop the right knowledge base so that you give yourself the added advantage when you are faced with potential investors and lenders.
Tip No 2
Think correctly and positively. Your mental life is one you have to take control over. One of the secret of success is the ability to take control of your mind and direct it to what you want to see happen in your life. If you want to raise finance, you can’t be talking about defeat and doubting your ability to do so successfully. I covered this aspect of “Mind Power” in my book “My Business Is My Business- Learn How to Earn a Fortune” and I have produced audio CDs on the subject of the power of the mind. Remember, you have something to offer the investor or lenders. Investors and lenders of money make their money through your ideas. They sell money for interest or dividend to those with great ideas that will generate profits. So the relationship is two ways. All you have to demonstrate is that your deal will help them realise their dreams. They have to see it clearly and so it is up to you to show them how it will work. Stay clear from fuzzy language and terminology that will only serve to distract from raising finance when faced with the opportunity to do so. Do not use jargons familiar in your industry but not outside your industry.
Tip No 3
Solicit the support of experts. You do not want to be “Jack of all trade and master of none”. Remember, the money you pay for expert services is not an expense; it is an investment in your business. Change your perception of money. This is one of the causes of success. Successful people always pay for good advice. The opposite is equally true for people who repeatedly fail in business and life generally.
Sheila Elliott is a business start-up and development expert offering group and one to one coaching as well as financial consultancy and training sessions. She is the founder of Business Services Support Limited and the author of My Business Is My Business- Learn How To Earn A Fortune. For more information about are free articles visit, http://www.businessservicessupport.com
Generating Business Ideas- Part 11
February 25, 2010
In this article, I am going to share with you steps for developing your business ideas into hot products and services that you can sell to your target market. This is a guide for those starting a business and for those aspiring to embark on business start-up. Just because you have ideas will not earn you financial success if it is not well developed and targeted to a specific market. In addition, your ideas must be developed to offer unique and useful benefits to your market.
In my book, My Business Is My Business- Learn How To Earn A Fortune, I have provided readers with the steps that are needed for starting a business from scratch. You can download a free copy of the book from www.businessservicessupport.com as well as many other ebooks and templates to assist you with starting a business. For now let me take you through a simple step to develop your business idea. This step works irrespective of what type of business you are starting. Don’t underestimate it just because it sounds simple.
The first thing you need to know is that the primary role of a business is to provide solutions to a problem faced by a target market. This implies the target market must have the desire to address the problem and your products and services must offer solutions to the market. With this simple information in mind, your role is to identify how your ideas can be developed to address a particular problem. Remember you can find techniques and tools for idea generation from our website.
Follow me in this journey. I want you to imagine what life was like when mums have to endure the problem of their babies having nappy rashes frequently. Endless crying due to sore bumps, sleepless night, prescription costs the list continues. This was a problem because the nappies did not always absorb the wetness and as a result caused all sort of problems. A typical entrepreneur who is problem solution focus did not join the bandwagon to complain but rather set his/her mind to work on the problem to come up with a solution. And true to the nature of our mind, an idea was birth which was called disposal nappies or pampers. Pampers kept babies bump’s dry even after doing their thing and mums were happy with that simple product but yet effective. Using this story line, any one can get their idea focus to resolve a particular problem and then develop a product for a target market.
You simply need to ask yourself these questions:
1. What is the problem I am trying to solve? You have to be specific and clear.
2. How can this problem be resolved
The second question must be asked in order for you to generate ideas that will provide the solution to the problem. Once you have generated the ideas using some of the tools shared in my book or earlier article, your next task is to develop the ideas to be more acceptable to your target market. To do this, you need to ask a third question.
3. Who will benefit from this solution- be specific?
4. What will be the benefits of this solution to my market
5. How would they want the product or services delivered to them – some research will be required here.
Getting an expert coach and mentor to take you through the process can be useful. Brain storming with others can also be useful and you can join our free forum and ask questions from others.
Sheila Elliott is a business start-up and development expert offering group and one to one coaching and training sessions. She is the founder of Business Services Support Limited and the author of My Business Is My Business- Learn How To Earn A Fortune. For more information about are free articles visit, http://www.businessservicessupport.com
Generating Business Ideas
February 25, 2010
My mentor, Mark Victor Hansen, who has made millions of dollars in the book writing business said this to his audiences to help them develop the right frame of mind for financial success
‘If you want to earn yourself financial fortune through your business, you need to remember this simple formula:
Real Wealth = Ideas + Energy.
In my book, My Business Is My Business- Learn How To Earn A Fortune, I have devoted an entire chapter on different techniques you can employ to develop your ability to generate new ideas and create new products. I am going to share some of these strategies in this article
First you need to know that creativity thrives in a relaxed and rule free environment. The quickest way to stifle creativity is to subject oneself in an environment rooted in fear, limiting beliefs, tension and rule bound. If you are to boost your creativity, open mindedness is critical. I am yet to meet people who are closed minded with fixed view or rule focus being creative. Most of the time, employees are working in environment that are rule bound and so stifle their creativity. Starting a business will require you to think and act differently. Being free spirited and opened to new knowledge and wisdom is the best recipe you can possess for ideas generation.
Here are some essential tools you can start off with:
1. Meditation- Clearing your mind from recurring cluttered thoughts is one of the best tools to start the process. The power to free ones mind from cluttered thoughts and open up to the higher energy of the universe brings with it lots of benefits including a boost to ones capacity to receive new ideas and intuitive guidance.
2. Relaxation- your body likes to relax and the calmer you are in the inside the more relax you is on the outside. So you may want to do more of the things that make you relax such as listening to soft music, get your self massage in a spa, read a pleasant book, listen to a teacher that inspires and calm you and so forth.
By simply using these tools, you will begin to experience magic and liberate yourself into the higher consciousness where you are more able to receive new ideas. Once you have received ideas, your role is to get it developed.
Other tools available for use to help you generate and developed business ideas can be found Chapter one of My Business Is My Business, which you can obtain from www.businessservicessupport.com for free.
Sheila Elliott is a business start-up and development expert offering group and one to one coaching and training sessions. She is the founder of Business Services Support Limited and the author of My Business Is My Business- Learn How To Earn A Fortune. For more information about are free articles visit, http://www.businessservicessupport.com
Request Videos For Download
February 8, 2010
Become A Student Recruiter and Earn Extraordinary Income toAchieve Your Financial Goals
February 5, 2010
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Our students recruiter affiliate programme, offers you the opportunity to get paid 25% commission of student’s fees from the second month after they joined the school, until they finish the school. In short, your commission is for the life time of the student. As if this is not enough, we have other products and services that your students can purchase and when they do so, you earn 25% of the sales proceeds, as long as the product is part of the affiliate scheme. Furthermore, you can promote other services and get paid 25% commission.
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Rapid Business Growth
February 5, 2010
For more information about what was discussed in this video, please visit the Rapid Business Growth page.
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February 5, 2010
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