“The best way to get something done is to begin.”
The above statement quote can be looked at in two ways. For starters, it can be related to a case of living your dreams at this very moment. Meaning doing something you have always wanted to do by starting out even if it means saving Ksh. 100 a day. A step is a step. Right? And secondly in terms of procrastination. Today, I would like us to focus on the latter more than the former. Clearly I have taken extremely long to post the second part of the My Pre-Global Entrepreneurship Experience which begun here. I am profusely sorry for taking forever to post the continuation and hope that you can still inspired just like you did in part 1.
The session we attended with my sister if you if remember well from the last time was called: From start-up to Growing Business: getting Capital to scale. It was also a panel discussion and was led by Steve Beck, Co-Founder and MD of Novastar Ventures. We found it to be super informative and enlightening in terms of investors and raising capital. Personally, I learnt that investors look;
- If there is a connection between the individual seeking investors and themselves. The more you click with an investor the better the better chances you have in getting funding.
- If the person or brand they are considering is viewed to be honest. Some even go further to do some back ground checks. In addition, they also see if your idea is of greater use to the wider community. So it shouldn’t just be about your personal gain.
- If you are patient enough to go through the hurdles of business and not just there for the good times. If your business plan includes long term goals the better. This is in case you just decide to close shop after a year. No investor wants that.
- At how your team is constructed and who is involved. Key word being TEAM. Are you a good team player? if you are that is the plan. You can not be the manager, accountant and CEO all at the same time….at some point of your business you have to let go of some areas by delegating so as to grow in other areas.
- If you have a central idea that you are building on as opposed to having several ideas. When you have more than one idea it gets difficult to succeed. FOCUS is imperative.
- For individuals that are receptive to advice, help and other ideas other tan their own. No one wants to give there money to a know it all.
- At your business portfolio, what is the situation at hand? are you enjoying profits, suffering losses or struggling to breaking even.
Lessons and tips on raising capital for your business:
- Be flexible in your approach with regard to raising capital. For instance you can get two or more investors instead of one significant investor. They can fit different needs so do not stress just make sure you all agree and put it into writing.
- Look for various instruments and approaches for getting capital and even investors. You can approach people with influence (net worth individuals) and strategic partners who can see your vision.
- Understand why the investor of your choice invests in others and also why she/he does not.
- Realize that having an investor(s) is more than capital. They can expand your networks, increase your opportunities and provide guidance and mentorship.
- Always ask for feedback from those with more experience, seek assistance and advice for strategy,pitching and presentation before meeting an investor. And also when you are meeting the investors also kindly ask for feedback from them so that you learn from them even if they decline to invest in you.
- Like point number 5 suggest, be prepared before meeting an investor.
- Be a pro-active individual and research before pitching so that you can have a connection with the investor(s).
- Know and understand your business and its environment.
- Understand various investors and what stages of your business they are willing to invest in. They are those that assist start ups, expansion and growth etc
- Last and most importantly, be receptive to the views of others before, during and after meeting the investors. Engage and do not restrict yourself.
I hope today’s post is motivating and resonates with you.
Blessed week ahead guys.