Raising Money

Some creative ways to gain financing for your business

You may be a budding entrepreneur with an excellent business plan and looking for lenders who will recognise your potential and reach out to give your business the big boost. At the very beginning you should acknowledge the fact that unless there is a strong need for the business in the present scenario you cannot expect to find many takers. Another fact which you should take note of is that no lender will entertain an entrepreneur with a history of poor credit. Your financial position and credit history will be the key decisive factors when seeking funding for your business.

There are many options to explore, once you have your financial credentials in order.

Opt for strategic financial investors

No doubt this is not an easy task, but this option is worth exploring further. If a Venture Capital Fund or Angel Investor shows interest in your business, that would be the best thing to happen to you. In the case of these investors, you will have to let go of some of your equity, but looking at the broader picture, such an investment would take your business several notches higher by provision of industry expertise, technology upgrade and access to a strong network of contacts, which will enable your business to grow exponentially or form strategic alliances with major players in the industry. Such investors are not easy to convince and, but if you do succeed in obtaining financial assistance from them, there will be no looking back, for the future growth of your business.

Explore further financial options with banks

Small businesses that are performing reasonably well have a very good chance of obtaining financial assistance from the regional and community banks. One may not strike gold at the first attempt, but there are several banks to choose from and moreover, the State and Central governments too sometimes offer finance to fund small but thriving business with a good growth potential. You can use your track record of success and inherent strengths as credentials to promote and support your application and give assurance to the bank. Your credit history will again play a key role here.

Employ talented team players

Highly talented employees many be ferw and far apart, but if you have them on your rolls, you will one step nearer to being an attractive investment proposition to the prospective investor. The talented employee will be ten times more productive and resourceful than others and will add ten times the value. Even though hiring talent has a higher price tag, it never fails in showing winning results. So keep a keen lookout for the impact players who can often turn the fortunes of a business.

The window of opportunity- jump through it

If you want to be ranked among the best, you have to run the race at a highly competitive pace. When a window of opportunity presents itself, don’t wait, just jump through it. Venture Capitalists often gauge the future growth of a company, from the aggressive drive of the leader, who at all times should be focussed on growth, swift action, and delivering value to customers at the same frantic speed. The company and staff will be following a dynamic trail and such a company invariably captures the No, 1 position. There will be ups and downs, which can be perceived as challenges and hurdles to be cleared in order to make way for greater growth.

Try to gain work with leading investors

The amount of time you spend trying to garner assistance from leading investors who have the means, methods and experience, and have backed many a successful venture, cannot be considered as time wasted. If fortunate, you can team up a great collaboration with a truly worthy VC, who is familiar with your industry and such personalities influencing your business do make a world of difference.

Create a larger than life image

Your company will make an impressive impact if it presented to the world, larger than it actually is. Do not be tempted to overdo it, but a bit of hype can do wonders in boosting your company’s image. In today’s scenario of PR and advertising, this is seen as necessary and aggressive approach to today’s market. Amplifying your position in the right manner adds to your success with the customers, the achievements of your company, the media coverage you have received and the great talent you employ, – all these factors add up to present your business as a very attractive option for investors. Market impression often carries quite some weight in the way investors perceive you.

Let your approach be honest and transparent

Entrepreneurs who have risen to the peaks of success are the ones who have maintained a reputation of high integrity in their business and with their team and business associates. They present their company in a totally transparent manner to their stakeholders and investors and consider the board as an important part of their company and not as people to whom you have to constantly highlight and sell your company’s credentials. In such a case the stakeholders are motivated to take a closer view and show keener interest in the business, since they too feel responsible for its growth.

Entrepreneurial Learning

To gain finance from investors, whether it is a Venture Capitalist, a Bank, or others, it would be great for your company to employ talented workers, present your company’s credentials in a positive light, be honest and transparent, and above all, grasp opportunity when it presents itself, without too much hesitation. Be focused on building a great business and infuse this enthusiasm in others around you, to achieve awesome results.

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