23/03/2024
How To Get People To Invest In Your Business
Want to turn your business dream into reality? Here’s the magic recipe:
If you have a dream and vision for owning your own business you also have a lot of work to do to make that dream a reality. There are three main things that you need to have in place in order to make it all happen. You need a solid business plan, you need specific goals and objectives, and you need make sure that people will want whatever service your business offers.
Craft a Rock-Solid Business Plan:
A solid business plan takes time to write. Many times people work on business plans for a year before they are set to go. Some of the critical components to a solid business plan are break even points, detailed description of services, back-up plans for adjustments, and the financial
management of the plan. Only when you have that business plan completed should you start investing money into your business or approach anybody else about investing in it.
If you go to a bank they will listen, give some advice, and tell you to come back when a solid business plan is in place. If you are considering family members and friends for financing, they deserve the same professionalism from you that the bank demands. It also shows dedication and the simple fact that you have researched and given certain aspects of the business a second thought.
Someone approached me recently and told me that she needed funding for a professional cleaning business in Abuja, and was going on and on about how lucrative it is. I then asked her to send me her business plan, and she said she didn't have one. I told her to take some time to write one, and that I will be inclined to give her the requested capital when I see the thought that she put into it. That was the last I heard from her.
Specific Goals and Objectives:
The business plan will help you lay out some of this but understanding your specific goals and objectives is really where the passion comes in. Without passion and clear objectives, it’s akin to sailing without a compass - exciting, but you’d most likely end up shipwrecked. Owning your own business is definitely two things in the beginning – exciting and a lot of work. You need to understand your intentions and reasons for diving in. When you do the rest will fall into place much easier.
Serve Up What People Crave (Make Sure People Need Your Business):
If you want your business to be your fulltime income and livelihood it is a good idea to make sure that people need what you are providing. If they don’t or the market is very small it is really more like a profitable hobby. That is okay too. Just make sure that you don’t confuse the two.
Ensure your business fills a need or solves a problem. You also need to clarify that your costs are in-line with competitors in your area of service.
When you are starting your own business you need to be up to the challenge. You need a solid business plan, specific goals and objectives, a business service that people need, and you need to be accountable. If you have all that you have the solid foundation you need to help it all come together.
If you are already in business, the best way to get someone to invest in your business is by being accountable, and maintaining your financial records. Most “Sole Proprietors” find this hard to do. They find it difficult to draw a line between them and their business, and crisscross their finances until it’s a web of confusion that hurts the business. Accountability is key; keep.
