Raising Capital for your Business

By Austin Imoru

The power to raise capital for your dream is a business plan. Get a good tantalising business plan with 5 to 10 years prospects and you will attract ambition investors in the country. Start your search of investors from close relatives, friends and wealthy friends close to you who could easily believe in your dream, since to them a young person with dreams is some kind of a promising future turned loose. The cool thing about investors everywhere is that each time they see young people with good ideas, they view them with avid interest. Largely because they don’t know whether the man with the idea will turn out like Bill Gates or another hungry man.

As you might have already noticed as a young Nigerian, your big uncles and aunties are not too willing to give you money whenever you want some. And you may wonder if they will be willing to turn in cash if you have a great idea you want them to invest on. The question you should be asking yourself is, if they will not release money when you are sick and hospitalise. Or if you were in prison or your love ones died and cash is needed for the burial. Ask yourself, how you get them to release cash in such circumstances. Would they release because they think it is serious business or because they think it is a do or die situation?

I have good news for you. The best way to get your relatives and friends to take you serious is with an organise plan. With a good business plan, that your big uncle or aunt can set you up in business and not even know. Everybody, particularly your relative are profit oriented. Nobody wants to throw hard-earn cash away just like that. You must convince them with a business plan. Of course, a business plan that states that their cash with you will multiply and not burn. It is a fact that a good business plan with profitable prospect will make any wise investor invest in you. Get a business plan, get that capital you need.

Anyway, what is a Business Plan? A business plan precisely defines your business, identifies your goals, and serves as your firm’s resume. The basic components include a current and pro formal balance sheet, an income statement, and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make good business decisions. Because it provides specific and organized information about your business and how you will repay borrowed money. A good business plan is a crucial part of any loan application. Additionally, it informs sales personnel, suppliers, and others about your operations and goals.

The importance of a comprehensive, thoughtful business plan cannot be overemphasized. Much hinges on it: outside funding, credit from suppliers, management of your operation and finances, promotion and marketing of business and achievement of your goals and objectives. It is simple writing a business plan, just pay attention to the above tips.

Before you begin writing your business plan you should consider the following four core questions;

1. What service or product does your business provide and what need does it fill?
2. Who are the potential customers for your product or service and why will they purchase it from you instead of another?
3. How will you reach your potential customers? What are your tactics that can sweep the market?
4. Where you will get the financial resources to start your business and what will your first, annual and range turnover be?

 What goes in a business plan when you start writing are not to far from your normal business essay. There should be a heading, body and summary in form of conclusion. The body can be divided into four distinct sections:

1)      Description of the business

2)      Marketing plan

3)      Finances (source of capital and anticipate income in 1 year, 2, 5 etc)

4)      Management plan

Addenda should include an executive summary, supporting documents, board of trustees (usually of credible personalities) and financial projections. Although there is no single formula for developing a business plan, some elements are common to all business plans. Several Business Plan templates could be found in my book, Principles of Wealth Creation for Graduates and some links on www.sistershouseofesteem.org or send us an email if you want us to help you write Business Plan or Government Proposal.

Finally, one of the best ways to learn about writing a business plan is to study the plans of established business in one or two industries. You can even ask any of those men you’ve proposed to be your principals or board of trustees.