I heard this phrase from Mr. Wonderful in the TV Series “Shark Tank”, “ Money is an amplifier, not a magic wand.”. What it means is that if you currently have a bad idea, money will amplify that bad idea further. If you have a good idea, it can spread the idea to new clients/customers. So the question now is, how do you know the difference?
I need you now to answer this question: Can you prove to everyone that you can predictably make Php 100,000 to Php 200,000 every month? Show your sales numbers from the initial roll out of your inventory. Money needs to have a strategic reason, and from my last blog, I mentioned about showing ROI. Will the use of that money result in more profits for a successful business for you?
My next question would be this: How are you getting your sales? Can your current audience assure you Php 200,000 in private sales for example? Is that with confidence or is that with a level of doubt?
If you’re having problems keeping up with the current demands, or you want to go bigger and have a good reason to invest money, then you could present your business to an investor. Whenever you’re shopping for a good investor, you can fund your business with small micro loans from companies that provide Collateral Loans.
Now if you don’t know which way to go, I highly discourage you from getting into debt right now. Instead, raise your price. Focus on putting up higher profits rather than acquiring more funds externally. When in doubt, always make it a point to be patient and WAIT. Write down a list of investors that you want to potentially work with, and tell them what you are up to. Remember this, a lot of people have money reserved for opportunities like yours because they have no ideas with them. They may have extra cash to invest because they only have 1 business, but most of them are looking to diversify their business portfolios. Take time to allow an opportunity to present itself to you. There will always be signs present. You just have to open your mind and eyes to it. That’s the time to make that call to your investor list.
With that being said, focus on sales and proving your product. Most people are waiting for money so they can make a move. The reality is, entrepreneurs have it backwards. MONEY FOLLOWS MOVEMENT. Money is dead when the business is dead or hanging by a thread. Remember what Mr. Wonderful said, right?
Funding your business isn’t about getting the money to push your product but a matter of creating momentum to attract the money that you need. This momentum is what we can in business the “Snowball Effect”.
Question of the day: Have you ever borrowed money for your business?