I had a great time training Entrepreneurs yesterday at the Access to Finance and Investment Readiness Clinic for the finalists of the Ghana Startup Club 100 by TANOE.
Amongst the many things I shared are these 7 nuggets worth knowing for all Entrepreneurs out there:
- Do not sing the masses song; when everyone is going Ghana is hard, Africa is tough, the world is collapsing, do not join them. You are not the same as everyone. Being an Entrepreneur is being a problem solver and in the midst of chaos, challenges, and difficult times, you find solutions and do not join others to complain. Doing that is only giving yourself a justification for under or non-performance and lack of results.
- The most reliable and important source of financing is income from clients through the provision of your services and products. Oftentimes, Entrepreneurs are fixated on the notion that their need for finance should come from external funding such as loans and equity investment but those are easy to access when you are able to show impressive traction and a record of consistent and increasing sales. So make it a point to focus on delighting your customers daily and they will give you the money you need to grow your business or attract the funding you desire.
- Time is and will always be your greatest asset; learn to Invest and Use it wisely and avoid wasting it. To invest time is using the time to give value such as knowledge, experience, exposure, skills, network and so on that will greatly enhance your performance. To use time is to achieve desired results from activities, doing what you set out to do, and accomplishing your daily goals. To waste time is to be unable to account for the use of time, not knowing what you accomplished with the time that just went by; no value creation, and no results achieved. As an Entrepreneur, always ensure you are maximizing the use of your time daily for business is essentially the exchange of time for money through value trade.
- Invest in building, nurturing, and managing productive relationships. Like it or not, who you know and who knows you is an advantage that can be leveraged in business and in fundraising. People invest in people. Business is made up of people and funders do not only look at traction but the people behind the business. In your fundraising efforts, research potential funders, examine their interests, establish a connection, build and maintain a relationship and consistently keep them in the loop of what’s happening in your business.
- Be curious and pursue knowledge of what is required to secure funding in the form of Debt or Equity Investments. Visit your bank and ask your bankers what it will take to attract a certain amount of loan looking at your current transactions and financial position. Pay attention to their recommendations and advice and start working towards it even if you don’t need a loan. When you hear of a company attracting investments, be curious and research who the funders are, what sectors they are interested in investing, what their requirements are, and who the decision-makers are in the organization. Knowing who is funding what and what it takes to secure the funding is always useful in your fundraising quest.
- Put together a business plan. Before you start panicking about this whole business plan business, relax!!! As important as having a business plan is, you really do not have to start with that. You can start with writing out your business model canvas; a general, holistic and complete overview of the company’s customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. You can continue with putting together a pitch deck; usually a 10-20 slide presentation designed to give a short summary of your company, your business plan, and your Startup vision. After these 2 documents, it will be relatively easy to work on your business plan building on your Business Model Canvas and your pitch deck. You can always ask for assistance from professionals to complete your business plan.
- Put your house in order. Money goes where money feels safe and secure. Investors will always perform due diligence on your business before any investment is made. Due diligence is an investigation of a potential investment (such as stock) or product to confirm all facts. These facts can include such items as reviewing all financial records, past company performance, plus anything else deemed material. Keeping records, building systems and structures, and having audited financial statements and annual reports will increase the potential of your company to attract investments as it reduces the risk of loss of capital and provides an appreciable level of guarantee for the effective use of funds to grow the business.
Remember, investment is an exchange of value. It is investors evaluating all their options and choosing you and your company as the most preferred investment option to provide them value for money and the best return on their investment. So, do not undersell yourself or go with a cup in hand as though you are begging them for assistance. Be confident in yourself, your business, your products, and services keep doing all the 7 recommended steps above, and enter any investment room with the conviction that you are their best bet at growing their money.
I wish you the very best in your pursuit of building your business and attracting the income and investment you need to scale up. If you need any assistance, talk to us at Ekow Mensah Consulting by email info@ekowmensah.com and we will be more than happy to Scale up your business with you.