Money: Some would say those five letters spin the globe. One thing is certain. The best business idea ever conceived will stay a pipe dream unless an entrepreneur successfully funds and markets a new business concept.
Small-business finance is, and has always been, a confidence game. Financiers only give or lend money to those who have earned their trust.
Here are some ways to build trust with those who might be willing to back your venture with capital. And remember: For a start-up, liquidity loans are also an option entrepreneurs can tap to successfully navigate through the start-up stage.
- Personal demeanor. Body language may be a fun topic for parlor games, but the truth is that much of our interpersonal relationships are driven by those subtle signals. When you are seeking financing for your business, be aware of your posture and presentation. It’s worth spending a few minutes in front of a mirror to see how you are coming across to the other person. Practice your delivery several times.
- Pro-forma statements. You can exude all the confidence in the world, but if you don’t have the numbers to back it up, all we can say is ‘good luck!’ Yes, your amazing personality will carry you pretty far, but do the math, too.
- Reliable communication. Let’s say you’ve got an interested backer. Don’t blow it with a disappearing act just when financing for your concept is in the offing. Quick replies to queries for clarification on your business expansion plans is so very important to pulling together your financing plan.
- Have a backup plan. Line up several alternatives for ensuring sufficient liquidity for your business so that grand-opening day isn’t delayed. You’ll also need cash reserves for marketing. Give it your best estimate and then double that amount. So many businesses underfund the marketing plan, but that’s the key factor in a startup’s success.
Follow these four tips, and you’re on your way to achieving your small business dream.