Many non-finance experts are wondering how they can get their hands on cash to start or expand a business. I think it’s fair to say that the information available on the market is less than clear. For that reason, I’m going to quickly share with you my seven tips to help you raise finances. I am sure you will find this information invaluable.
Be clear about the type of finance you are looking for. There’s nothing worse than being unclear about how much you need when faced with a potential investor or lender.
Be clear about what you want the money for. No wise investor or lender will hand over their cash unless you are sure what you want the money for. It is always advisable that you have a clear analysis of how you expect to use the money, along with clear estimates of the cost of the resources you plan to purchase. Your cost estimate may change over time because inflation is beyond your business’s control. Be prepared to revise your estimates if your business plan changes before meeting with a potential investor.
You need a business plan and you need a plan that is strong with financial projections included in the form of profit and loss, balance sheet, and cash flow. Your financial forecast should contain key financial indicators, which accountants call ratio analysis. I’ve seen business plans that only include financial figures.
This is not a business plan, it is simply a financial plan. Don’t make the same mistake. Your business plan should contain details about your business, your vision, mission, and strategic objectives. It should also provide details about your target market, marketing, and sales strategy. You want to make sure the plan is compelling and by compelling, I mean really persuasive and impactful. My company helps clients create compelling business plans.
You definitely want to be able to explain your business plan to potential lenders and investors with confidence. If you can’t do this, you will lose their trust fast. Lenders and investors want to know that you have a team of experts in the business to support the delivery of the plan (this does not mean they are your employees) but equally if you are a business owner, they Hopefully you should be able to explain your business plan to them with confidence. You can call professional accountants to explain the figures in formal meetings.
However, as the business owner, if you can interpret the data, you’ll quickly grab their attention too. Presenting to investors and lenders is about influencing other people to do what you want them to do. Don’t forget this key point. Do everything you can to impress lenders or investors by taking the necessary steps to be well-informed about every aspect of your business plan.
Stay away from cheap plans that will ultimately decrease the quality and not achieve your goals. Whether you are in business or starting a business, there are certain expenses you have to bear and if you fail to do so, your business dies. Sorry, I’m frankly honest with you because I want you to be successful.
Make sure you present yourself well when you meet investors and lenders. The way you dress and speak matters. Your every step is being monitored. Your presentation should be compelling. That’s why we offer training seminars in financing your business to help you develop the right knowledge base to give yourself an added advantage when you come in front of potential investors and lenders.
At last think right and positively. Your mental life is what you have control over. One of the secrets of success is the ability to control your mind and direct it toward what you want to happen in your life. If you want to raise money, you can’t talk about defeat and doubt your ability to do so successfully.
I have covered this aspect of “Mind Power” in my book “My Business is My Business – Learn How to Earn a Fortune” and I have prepared audio CDs on the subject of Mind Power. You might want to pick up a copy and learn more about it. Remember, you have something to offer investors or lenders.
Money investors and lenders make their money through your ideas. They sell money for interest or dividends to people with great ideas that will generate profit. So the relationship is of two types. All you have to do is demonstrate that your deal will help them make their dreams come true.
They have to see it clearly and so it is up to you to show them how it will work. Steer clear of fuzzy language and terminology that will only serve to distract from raising finance when you have the opportunity to do so. Don’t use jargon that is familiar in your industry, but not outside your industry.
Finally, seek the support of experts. You want to be the “jack of all trades and master of none”. Remember, the money you pay for our services is not an expense, it is an investment in your business. Change your perception of money. This is one of the reasons for the success. Successful people always pay for good advice. The opposite is equally true for people who repeatedly fail in business and in life.
How to Teach Personal Finance
The current economy has prompted many to provide practical financial literacy lessons to their children. Teaching personal finance and raising money for smart kids will help keep America strong.
Teaching personal finance and raising money Smart Kids gives our children the ability to recognize and capitalize on opportunities that will help them fulfill their personal American Dream. This “dream” is achievable with practical financial knowledge and through personal finance education, our children will have a much brighter future.
Our children face an almost certain future of higher taxes, fewer services, and the elimination of the current Social Security and Medicare systems. Read the report from the Government Accountability Office and you will find that the SSI system will be bankrupt in 2037.
While it is true that our children will face greater economic challenges than us; However, by teaching personal finance and raising money to smart kids, they will be able to achieve their own personal American dream.
What do we have available to start teaching personal finance to our kids? All of the schools’ requirements have been put to the test (No Child Left Behind) and the troubling fact is that most schools are not given the budget they need – perhaps this is not where most of our children receive their financial training. will do.
Parents – Most youngsters rely on their parents as their primary source of money knowledge; however, as the statistics clearly show, most parents do not possess the necessary knowledge to effectively teach their children about money. They want money-smart kids but most weren’t trained on how to start teaching personal finance to their kids.
There are financial literacy courses designed to help smart kids raise money. Recent home-study financial literacy courses are now on the market and are designed to educate and entertain youth while providing practical financial lessons. Some have even partnered with sports stars and celebrities to create a powerful draw so your kids may want to see what their favorite celebrity is up to and learn money lessons along the way.
There are many courses that are specifically designed to help parents get started in teaching personal finance. These courses teach parents the basics of raising money smart kids and often the parents learn as much as the kids.
Nonprofits – There are many nonprofits doing great work to help spread the message of financial literacy and train our youth with practical money skills. Fortunately, financial literacy grant money and corporate sponsorship are empowering many nonprofits with the ability to teach personal finance, so that the next generation learns the practical financial lessons we “learned the hard way.”
Private Companies – There are companies that thrive in all types of economic climates and in an environment where so many people are going through tough times, financial education companies stand to profit by helping people improve their financial situation.
Right now the financial literacy movement is spreading faster than ever before at the grassroots level. People want to start teaching personal finance to their kids because they want money-smart kids. We appreciate you reading this article and looking for ways to empower youth with the financial literacy skills needed in the ‘real world.
In collaboration with parents, nonprofits, schools, educators, and business leaders – we can start teaching personal finance and make sure we are raising money for smart kids. Doing so will help these youth gain the skills they need to live the American dream.
How to Keep Your Finance Under Control
Let me give you some personal finance budgeting tips to help you keep your budget on track.
1. Keep track of your daily expenses. This can be the trickiest part of your personal finance budget. Maintain a ledger or log book to track your daily expenses. This will help you note down all the expenses without having to remember them.
2. Before going to any shop, make a list of things that you need. Buy only the things you need. If you go to a store unprepared, you might end up buying unwanted items and end up spending more. If you have a proper plan, you will not only save yourself money but also reduce the chances of forgetting things you need.
3. Don’t make an impulse purchase. In other words, don’t shop for the sake of shopping. It is a phenomenon that happens when you hang out with your friends. You go to the shops and buy things that amuse you. But in fact, you may not need them at all. Avoid such cases.
4. If you are going to buy a large quantity, say $400, it is always advisable to buy it after a few days. This will often help you analyze the need for the product. You may not need that purchase at all. So if you think about it for a few days you will have some wind to think about your purchase.
Budgeting is all about shouldering responsibilities so that you can reduce your unwanted expenses. A budget shows you how you can cut down on your spending by avoiding unwanted purchases. Follow these steps and you will find yourself in a very secure financial position within a few months.
