For any business to thrive, it’s all about self-sacrifice and reduction of unnecessary expenses. We all want to use iPhone 11 or even a Rand Cruiser VX, but having a dedicated monthly savings over a period of time can make this happen. The question is, how many people are willing to commit to the same level of dedication of saving towards launching their own businesses?
As a promising entrepreneur, the first source of capital for your business starts with “YOU”. How do you convince potential investors to invest in your idea if you don’t even have any capital capacity to push your own ideas?
The easiest way to do this is only if you have a previous business success that stands for you.
Imagine Maxence Melo or Mike Mushi trying to raise money for their new venture – their ideas are enough to get funding based on their past and present successes. Any potential investor will be willing to listen to their ideas because their history and ability to push things forward is widely recognised.
Everybody is thinking about the same big question, - how do I raise capital for my business? It will take me 10 or 20 years to save up for my business. How much do I really need to get started?
Most startup ventures started by entrepreneurs were bootstrapped before investors took interest in them. Forget what introduction to commerce taught us in secondary school about the sources of funds for a business being, but not limited to family funds, investment and bank loan, etc.
Some business investors might believe in your business plan, while others might not. Not because you have a bad business plan or not doing something great, but it’s because they would rather spend their money on something else.
Always have in mind that, if your family or close friends do not invest or support your business, why do you think the investors or banks would?
Instead of withdrawing back into your shell because of the lack of capital to start your business, come to terms with the fact that you are the only one who can breath life into it. Once you get your business off the ground, investors will come begging to join your business. But you must take that first and hard step of saving for the initial launch of your business!
The question is, are you ready to do away with some luxuries?
Here are steps that could be of help:
1. Always go with what you need, and not what you want. Research shows that, people can do without 7 out of every 10 things we buy. What does this means? It gives you an opportunity to save a good portion of your income by reducing unnecessary expenses.
2. Put everything you have on your idea and push it with every penny you have. Have you ever heard the quote “Something done is better than perfect?” Well, a running business gets more attraction to investors faster than a business that is sketched on business proposal papers.
3. Have plan A, B, and C. If business investment doesn’t come, what happens? Is it the end of the business plan? No! You have to find other means to push it until the business is self-sustaining.
4. Networking – the power of networking must never be underrated. Connect with people and they will be of help in your business.
5. Promote your business – Visibility is key. People tend to appreciate and get interested in things they know. Building a quality service and having media attention will make your business noticeable.
6. Have a unique concept: Don’t try to create or be another Facebook, Twitter or SnapChat. All you need is to create something different and better that will catch people’s attention.
7. Have a revenue sustainance plan: Business investors are more interested in how much profit your business will make for them. So, create more revenue streams for your business that will keep investors hooked.
Have you started saving yet? Don’t stop dreaming big, but start small and start now.
iKrantz Mwantepele is the Founder & CEO of Koncept Advertising Co. Ltd. Email: firstname.lastname@example.org