Change your view on Bank Finance
When looking for your start-up capital to fund your brilliant business idea, where do you start?
Majority of entrepreneurs start their business with the aim of making money. Making money is an outcome of running a successful business.
When you chase after money you seldom find it. Parents think back to the last time your children asked you for money for sweets of something of no value. Most parents answer to that child is "NO" either because their bad for their health, or because let's face it the truth it's a bad investment period. The money would not be returned in any form of positive value, it might be returned as a negative with more bills of dentists for rotten teeth because of such sweets.
As a child you have not foreseen the consequences of your request, and find it hard to understand the “NO” that has been given to your request.
The Banker finds themselves in this same situation as the bulk of entrepreneurs come with the same business plans (same, meaning no real value add). Business that try copy already existing business have no proper value add and want to operate with the faith of the market desiring their products/services above other businesses already established within industries. Banks are established with the purpose to make money and make their money through investments, investments in your business.
Aspire to add value.
The key in acquiring finance from Banks or any lender is to offer them investment opportunities, something that will change industries, create new markets, create wants within society and be convenient.
The steps you must take in drawing up your business plan is to:
- Business Bankers are there for a reason in Banks, they are there because they have the access to all market information and trends, they know what was needed in the market, they know what is needed in the market now and they have already predicted what will be needed in the future.
- Investment Brokers/ Analysts have market trends for most industries as they have daily dealings with markets around the world.
- Consumers of the market/s you desire to enter. These consumers will give you an indication of your products position within the marketplace.
- Work with an accountant when doing your financial calculations and projections to get accurate predictions of the returns to be received.
- In conclusion
Being success is a team effort, so surround yourself with a capable team of experts withinntheir relevant fields and draw all information about markets, trends and compliances in order to make your business/ business idea start on a solid foundation.