Raising Money for your Business

This is one of the hardest things to do while starting a new business, if you are a young entrepreneur who just
started his way most chances that the money for your business/project will come from your own pocket or your relatives.
Just stay focus on your target and don't let anyone stop you and you will receive the first amount of money that
you need for starting your business.

Also this days the banks are more than happy to give you a loan, so when you are going to ask for one you should
know that you need to go ready.
That means you need to go with a business plan to the bank that will explain exactly to the bank what
you are going to do with the money once the bank will give it to you (more about business plan you can learn in the Business Plan Chapter).

You have to be prepared because the bank manager will ask you a lot of questions, you need to answer
immediately and to show self confidence that you know what you are talking about.
I see a lot of young entrepreneurs with a great ideas for a new business going to the bank to ask for a loan, but once the
bank manager start asking them questions they had no idea what to answer and that shows that they are not professionals.

So Don't Be Lazy, be ready.


Raising money from a bank

1. Go with a Business Plan to the bank.
2. Learn everything you can about your business (do a lot of research).
3. Show self-confidence.
4. Listen when the bank manager is talking.
5. You are a business man so dress nicely, I recommend a suit and a tie. (Have you ever saw someone with a suit and a tie and you didn't give him respect?)
6. Look at the eyes, of the people that you are talking to.
7. Smile, but do not laugh.
8. Keep things simple.
9. Show facts that your business is going to be successful
10. Tell the amount of loan
11. How funds will be used
12. Requested repayment terms (number of years to repay). ask for the longer repayment term, this will help your cash flow.

Raising money from Investors

1. Funds needed short term
2. Funds needed in 2 to 5 years
3. How company will use funds, and what this will accomplish for growth
4. Estimated return on investment
5. Exit strategy for investors (buyback, sale, or IPO)
6. Percent of ownership you will give up to investors
7. Milestones or conditions you will accept
8. Financial reporting to be provided
9. Involvement of investors on the board or in management

* If your loan request gets turned down keep trying, go to other banks or other Venture Capital Fund if you will stay consistent you will find the way to raise money for your new business.(that worked for me and still working)