Are you trying to raise capital for your business? Do you have what it takes to borrow a million dollars? If I provide you a step by step action plan to borrowing a million dollars fast, will you implement it? If your answer is yes; then read on.
Now regardless of whether you need to raise funds or not, you definitely need to read this article because even if you don’t need cash today; you might need it tomorrow for expansion or whatsoever. The primary duty of an entrepreneur is to raise capital for the business by any means necessary. Cash flow is the life blood of a business; therefore, an entrepreneur must keep cash flowing continuously into the business for it to survive. But unfortunately, access to capital is one of the major business challenges entrepreneurs face. Now how do you overcome this challenge? Well I will advice you read on because in this article, I will be sharing with you the secret of either raising or borrowing any amount of money you want.
I have watched my business mentors raise or borrow hundreds of millions in dollars; and some even went ahead to borrow billions of dollars. In retrospect, I have also seen entrepreneurs struggle to raise a mere $10,000 in capital. Now what’s the difference between those who raise millions and billions of dollars and those who struggle to raise peanuts? You will find the answer below.
How to Raise or Borrow a Million Dollars Fast for your Startup
The first and probably the most important criteria to raising or borrowing money for your business is your credibility. Call it your track record and you won’t be wrong.
- Who are you?
- Who are your partners?
- How credible are you?
- Who have you successfully done business with in the past?
- How much have you raised or borrowed in the past?
- Were you able to back the borrowed funds within the stipulated time frame?
- What’s your personal success rate with respect to businesses you are involved with?
- Do you deliver on your promise to investors, lenders or business partners?
These are the type of questions lenders/investors go all out to find answers to. The more positive your records are, the more likely you will get the cash you need.
Competence is the next key to successfully raising or borrowing funds for your business.
- Are you the Larry Ellison, Jack Welch, Steve Jobs or Jeff Bezos of your industry?
- Are you known in your industry as a problem solver or innovator?
- How consistent has your business growth been?
- How do you handle business challenges?
These are the type of questions that tends to evaluate your level of competence. Aside the usual business plan and financial statement; investors or lenders want to see confidence and competence on the part of the entrepreneur.
3. Have a strong business team
Money follows good management. This statement is the truth in its entirety. Business is a team sport; so also is investing. Show me a business man who raises millions and billions of dollars with ease and I will show you a business man with a team that commands respect and strike fear in the heart of competitors. The primary reason entrepreneurs struggle to raise/borrow money for their business is because they are trying to do it alone. Who is on your team? This is the most important question investors/banks/lending institutions want an answer to because a strong management team inspires confidence.
4. Have a solid financial base
Aliko Dangote raised about $1billion for his Obajana cement factory without stress because his business plan demonstrated his ability to payback. Afer paying back the bank loan, he went ahead to borrow $4.5 billion from the banks to build a $9billion petroleum refinery. So when raising or borrowing money for your business, make sure you demonstrate your ability to payback.
5. Have a fast growth plan
How fast is your growth plan? How long will it take you to payback your business loan with the accrued interest? How long will investors have to wait to get their money back? The lesser the time your business plan promises to payback investors; the more likely you will get the funds you need.
6. Be a brand
How long will it take companies like Apple, Coca Cola, Pepsi, GE and Microsoft to raise any amount of money they need? It will cost these companies minimal time and effort to raise any amount they want. Why? The reason is because they are recognized brands, with good management and worldwide customer loyalty. So if you want to increase your chances of raising capital now or in the future, then build a strong brand.
7. Develop strong business / political connections
Lastly, having the right connections is one of the untold secrets of raising or borrowing money for your business. In fact, it’s a recipe for success in life. Raising capital is not just about having a good business plan or knowing how to sell yourself; more important is who your know. Who’s on your friend’s list? Are you socially connected with the elites of the society? How many investment bankers or angels do you have access to? The point I am trying to stress is that who you know matters in the game of raising or borrowing money.
As a final note, I want you to know that raising capital is not only a game of skill; it’s a people’s game and no matter how difficult the process of raising funds proves, never give up.