|
Earn N500,000, invest N5,500 only! HOW TO RAISE MONEY FOR YOUR BUSINESS To Successfully raise money, you need the following information Demonstrating
Your Business Plan. Today, large
opportunity and growth possibilities are insufficient to secure funding. Raising
money has turned back to basics. Your possibilities are now dependent on a solid
and fully developed business model. Secondarily, you will need to be able to
articulate this plan in a persuasive manner. If you have
confidence in both your business plan and the value of your business, you are
likely to be able to negotiate favorable terms when seeking to raise money for
your business. In the process of
obtaining initial interest with potential financing sources, you will likely
need to make a formal presentation. The focus of the presentation is the
communication of a well-reasoned and complete business plan. Your presentation
(and obviously your business model) should address the items listed below. Executive
Summary –
This must get initial interest, while at the same time put forth the most
salient points of your entire plan. The Market Who are your customers? What problem are you solving for these customers? What are they willing to pay for this solution? How many of these customers are there? Based on the above, how big is this market? Your Product How does your product solve your customers’ needs? Some technical details of the mechanics of your solution (to convince
your listeners that it really works) What suppliers will be supporting your development? What are the critical processes that you must perform well to deliver a
quality product/service? The Competition and your Differentiated Solution Who are your competitors? (If you claim that there are none, you will be
immediately dismissed as stupid or arrogant - or both) How your product is an improvement over existing solutions? How is your product priced relative to your customers’ alternatives? What core skills does your organization have or what assets do you have
that others do not? Marketing What channels of distribution do/will you employ? How many salespeople are needed? What is the advertising and marketing plan? What alliances will you rely upon? Leadership Who are the key members of your team? What credential and expertise do these people have? What is their record of accomplishment and success? What outside advisors are helping you? Numbers What detailed financial models have been prepared? What assumptions are important to these models? How sensitive are these models to changes in these assumptions? What key performance indicators are important in this business (more than
just profits and cash flow), and what are these showing? What is the breakeven point for the business? How do these forecasts compare to whatever historical results you have
already achieved? How do these forecasts compare to what others in your industry are
achieving? Click here to continue
|
|
|