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Most entrepreneurs strongly believe the major problem they are facing is FUNDING. As true as it sounds, is that really the truth?

A business without structure looking for funding is a channel for wasting resources. Recently, a startup entrepreneur told me she needs money to get a physical space for her business since she has been doing home service for a while. I asked her what she has been able to save from her home service business. Nothing! I asked her how she intends to pay for the new space? She was looking for someone to actually give her money to rent a space. I told her that if she hasn’t been able to save anything from her home service, she doesn’t need to rent a physical space without a regular cash flow.

We often think once we rent a space sales and customers are automatic.

No! It isn’t!

In fact, if you are not careful the rented space can create a financial burden! Funding would not automatically solve your problems or business challenges. You have to learn how to be a good manager of your business resources. You have to learn how to manage your finances. Money disappears without financial management or money management skills.

Clear vision, skills, structure plus financial discipline do attract funding. Investors want to see your track record before they invest in you. Below are some potential questions you could be asked

What have you been able to do on your own?

How much have you been able to raise?

How much cash flow have you turned over?

How much savings do you have?

Can you show your records for the past 2 years?

Can we track your growth?

Is your vision clear?

Where are you now and where do you want to take the business?

Nobody invests in a business without clarity. Business growth is not all about funding. Get structure before you get funded! Funding without structure is a disaster waiting to happen!

Remember your dreams are valid and Keep hunting!

Tinu Smith

Follow me on Facebook and Instagram @Tinu smith

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