Creative Ways To Raise Funds For A Business

About six years after I have been studying every aspect of entrepreneurship, I discovered that the same tactics we men are using to woo ladies (and which ladies are using to attract men) are the same tactics that smart entrepreneurs are using to get all the capital they need to start or grow a business.

Did you know, getting a lady’s heart is a weighty achievement than getting capital?

This is because a lady’s heart is her life, if you get it you have gotten ALL she has.

Who on Earth doesn’t know that human life is far expensive than all the resources on Earth?

You think about it! When a lady decides to give her heart to you, she’s simply saying, “I give you my life”.

Now examine it. There are some fundamental processes that lead you to getting a lady’s heart. What if we can apply the same creativity that allows us to get ladies into getting capital?

Yes, we can!

Now you are wondering, but Justine (some people will say) getting a lady is easy, but getting capital is very hard.

You see, for a hen, walking on the ground is easy, but flying is very difficult.

Come to think about it. Hens have wings, but they cannot fly.

Why?

She was never trained to fly.

Eagles on the other hand do diligent work of training their young ones how to fly.

Once again I tell you. If any man can get a lady’s heart, such a man can get capital to start a business.

Why do I say this?

Because the same Art and creativity is involved in getting a lady’s heart and getting business capital.

Most men who are reading this article have gotten three, five or more ladies in the past. Most women who will be reading this article know how to entice, attract and get men into their lives.

If you ever got a lady, I tell you, you can get enough capital to start a business. If you are so confident (just as many of us are), that you can go out NOW and win a lady’s heart or if you know what it takes to attract men to you, then you can go out and get capital now.

When I say now, I mean NOW.

Hey, I’m not writing these words to you as a writer (though I am). I’m not writing these words to you as a motivational speaker (though I am). I am writing these words to you as a DOER of this act, as a practitioner of this tactics.

Listen to me.

I have met strangers and got capital from them, I mean total strangers.

No magic is involved.

I simply applied the same tactics men use to get ladies, to getting capital.

The two wings an eagle has and uses to fly are the same two wings a chicken has, but she cannot fly.

It’s a pity.

Why can’t chicken fly and keep flying?

She was never trained to use what she has.

The same methods men use to woo ladies and women to attract men are the same methods they can use to get capital.

But why aren’t people using their “wings” to fly?

They were never trained to do so.

You are about to learn about one of the most creative ways to raise funds for your business.

It’s called “OPM”.

And many of the world’s most successful companies love to use it.

Coca-Cola uses it.

ExxonMobil uses it.

And many other multinationals love to use OPM.

“OPM” means Other People’s Money.

While many entrepreneurs and small business owners struggle with funding and use their personal funds to grow the business, most big companies have mastered the art of using other people’s money to grow and expand their businesses.

And if they can do it, nothing stops you from doing it too.

In this article, you are going to learn common but creative ways to raise funds for your business by using OPM.

*1) Customers (Upfront payments)*

I have a client who runs a business in the solar energy space. He specializes in designing and installing solar solutions for residential homes and office spaces.

For most people in this industry, it’s a capital-intensive business. You will need funds to purchase and store inventory like solar panels, inverters, batteries, etc.

But guess what: my client owns minimal stock and doesn’t need to “tie down” funds in inventory.

Instead, he uses his customers’ money to fund the business.

Once an order is made, some clients pay 50%, 70%, or even 100% of the cost of the project upfront.

The upside of this funding strategy is that his business doesn’t have to buy stock and materials in advance, unless there is a real client who has already paid money.

Also, there is a risk that stock can be damaged or become outdated if it’s stored for long periods (especially if it’s a technology-based product).

This strategy would work well if you already have credibility with your customers, or if you run a business that provides customized products, or if it’s a service-based business like training, consulting, contracting, etc.

*2) Suppliers (Accounts Payable)*

This is one of the most creative ways to raise funds for a business by using OPM.

When I was in the oil industry, I noticed something really strange.

I worked with a contractor at the time that provided services to large oil multinationals like Chevron, Shell, and ExxonMobil.

Despite all the money these big companies have, they all had one thing in common:

They don’t pay their suppliers immediately.

Usually, it takes between 30 to 60 days (or more) before a supplier is paid for products or services they already delivered to these multinationals.

And this is all perfectly legal. In accounting, it’s called “Accounts Payable”.

It’s not just multinationals that do this. Almost every big company in the world doesn’t pay its suppliers immediately.

I also have small clients like retailers who run supermarket chains and use the same strategy.

In fact, most suppliers in the B2B (business-to-business) space are already used to this behaviour, and know they will not be paid immediately.

Interestingly, delaying payments can be good for the supplier’s business because they can make more sales when they sell on credit.

If you run a supermarket, mini-mart or kiosk, create relationships with your suppliers so that they supply you on credit and leave you to pay as the goods are bought.

*3) Banks (Business Loans)*

Do you know how banks make money and why they are so profitable?

Banks make money by taking funds from savers and depositors, and giving out those funds to people and businesses (borrowers) who pay the bank interest to use that money

In fact, banks are masters of using other people’s money to make money.

And if you understand the game, you can use this strategy to fund the growth and expansion of your business.

If you know how to access and use business loans, you will absolutely love them. And I have several clients who run their businesses exclusively on business loans.

But business loans can hurt your business if you don’t know how to use them.

I will soon write an article on business loans, how to access them, what to look out for so that you don’t get burned, and several other important tips.

*4) Government (Grants and low-interest loans)*

Every government wants to stay popular and win the next election.

But to do that, they need to create enough jobs, generate enough revenues, and grow the economy in a way that makes people happy and want to vote for them again.

That’s why across the world, governments provide billions of shillings in business grants, low-interest business loans, waivers, rebates, and all sorts of direct and indirect financial assistance to entrepreneurs and business owners.

All that money is just sitting right there. It’s other people’s money you can use to grow your business.

Sometimes, the problem is many business owners don’t know how to access or maximize the use of government-sponsored funding opportunities.

I will soon teach you more about business grants and low-interest loans, how to access them, what to look out for and several other important tips.

*5) Investors (Equity, debt, and hybrids)*

Every investor is looking for an opportunity to make money. That’s why they invest their personal funds and the funds contributed by their clients.

And this is exactly how investment models like angel investing, venture capital, private equity, private placements, and initial public offerings (IPOs) work.

If investors don’t give out (invest) their money, they won’t make more money.

That’s why investment funds constitute one of the biggest opportunities for funding for entrepreneurs and business owners to use other people’s money to support their business.

But investors don’t just invest money in any business. There is a process.

You need to understand how investors think, what they are looking for before they invest in a business, and how to make sure you are getting a good deal so that you don’t accept ‘bad’ money.

*6) Philanthropy and Foundations (Grants and zero-interest loans)*

There are hundreds of organizations around the world that are looking for social-impact businesses and projects to invest in.

These organizations are funded by foreign governments, international development groups, non-profits (NGOs), wealthy individuals and families, etc.

For example, the Bill and Melinda Gates Foundation and the Novo Nordisk Foundation are the biggest private foundations in the world with over $100 billion in assets.

And guess what: most of the funds you can get are grants that don’t have to be paid.

In total, over billions of $$$ in funding are available annually for entrepreneurs, businesses, and projects that work in industries or fields of interest.

*Finally,*

Once again I tell you. If any man can get a lady’s heart, such a man can get capital to start a business.

The same Art and creativity is involved in getting a lady’s heart and getting business capital.

If you ever got a lady, I tell you, you can get enough capital to start a business. If you are so confident (just as many of us are), that you can go out NOW and win a lady’s heart or if you know what it takes to attract men to you, then you can go out and get capital now.

Also, don`t forget to join our training on Beauty Business. We only have 3 days remaining.

Kenyans spend over Ksh.5 billion a month buying beauty products. These include bath and shower products, cosmetics, skin care, baby care, oral care and perfume products.

Demand for beauty and cosmetic products in Kenya has grown steadily over the last one decade.

Within those few years, some of the small retailers in this line of business have grown into “supermarket” status and they have opened branches across the region.

Clearly, you don’t need rocket science to understand just how promising this industry is.

By
Timothy Angwenyi
Business Consultant
+254701711058

Justine Nyachieo
Business Man & Mentor
+254754839228

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