Overview
Finding money to start a new business or to help an existing business grow is possible. The process can seem overwhelming, but it doesn’t have to be if you understand who has money, how they operate, and how to approach them. Once you’re successful finding money you’ll have created flexibility’s for your business that can go a long way toward resolving problems before they become costly or unmanageable. Better yet, you’ll have made it possible to take advantage of opportunities that might otherwise have been out of reach.
As Arthur Clarke put it, “The future ain’t what it used to be.” To effectively manage the financing of your business in an environment or change you need to constantly plan, research, act, and adjust.
Plan
When Alice asked the Cheshire Cat which road she should take at a crossroads in Wonderland, he asked her where she was going. She said she didn’t really know, and the Cat replied that it didn’t really matter, then, which road she took. Your company is the same; if you don’t know where you’re going you can’t pick the right road to success. Planning for your business needs to be an on-going, top-priority process.
Research
Keep track of significant occurrences in your industry, and keep track of your performance compared to others in your industry. At the same time, a budget based on the income and expense proformas you prepared as part of the financing process will tell you how your doing compared to what you thought you could do. New financing techniques and sources are always being developed, especially for new and growing companies, so stay current. Use your local libraries and librarians; they’re the most under-utilized resource you have available to your business. And don’t forget on-line information services. Keyword retrieval of industry news can help you keep ahead. Research what’s going on constantly, especially by reading everything you can put your hands on.
Act
When it comes to finding money, start early. It always takes longer than you think it will, and you want to avoid giving the impression that chronic cash shortages and “emergency” visits to the bank are standard operating procedure. It’s not an exaggeration to say that you should always be looking for the next round of financing. You have to do something. Take action.
Adjust
Your on-going planning, your research, and your actions should keep your company nimble and on it’s toes. Run your business on the premise that five years from now you’ll be doing something entirely different. You may be selling to different markets, you may be creating different products, you may even be running a different company. As the world changes, as your customers’ needs and wants change, you’ll have to adjust to changing reality. Our hero is an entrepreneur who brags that he’s working on his second million. “Gave up on the first,” he admits. That’s exactly the undefeatable spirit it takes to adjust and, ultimately, to succeed.
This video will give you some idea of the changes ahead:
