9 mantras for entrepreneurs to raise funds and manage finance successfully

9 mantras for entrepreneurs to raise funds and manage finance successfully

Managing finance could be as tough as raising it and small business owners often struggle in both.

Nonetheless, there are steps a small business owner must take to raise capital efficiently and use it effectively to avoid situations of working capital under stress.

The end goal

The end goal

Fundraising to entrepreneurs is often a goal rather than a means to achieve a business goal. Hence, before looking at approaching the lenders, it is important to decide whether you are raising funds just for the sake of it or is it a means to an end

Fundraising to entrepreneurs is often a goal rather than a means to achieve a business goal. Hence, before looking at approaching the lenders, it is important to decide whether you are raising funds just for the sake of it or is it a means to an end

While the credit monitoring arrangement form is important to help lenders ascertain the financial health of a business, a highly detailed financial forecast model is critical where you can map every single business parameter.

While the credit monitoring arrangement form is important to help lenders ascertain the financial health of a business, a highly detailed financial forecast model is critical where you can map every single business parameter.

Financial forecasting

Proactive due diligence even before one hit the street for fundraising helps in fixing errors in businesses. Many deals fall through because companies are not ready for diligence and when diligence agencies undertake due diligence, multiple issues come up

Proactive due diligence even before one hit the street for fundraising helps in fixing errors in businesses. Many deals fall through because companies are not ready for diligence and when diligence agencies undertake due diligence, multiple issues come up

Due diligence

Presentations are often the first step for promoters to provide investors with a look into their business before the numerous discussions that take place between the two to understand the business really well

Presentations are often the first step for promoters to provide investors with a look into their business before the numerous discussions that take place between the two to understand the business really well

Exciting presentation

Exciting presentation

Understanding the investor’s background, his areas of interest in investments, companies he has invested in and how they are performing, how much he usually invests, etc., might pay off in cracking the right deal

Understanding the investor’s background, his areas of interest in investments, companies he has invested in and how they are performing, how much he usually invests, etc., might pay off in cracking the right deal

Know your investor

While negotiations and counters won’t irk investors and weaken the promoter’s chance of securing an investment but key to success in negotiations is knowing what one really wants to negotiate

While negotiations and counters won’t irk investors and weaken the promoter’s chance of securing an investment but key to success in negotiations is knowing what one really wants to negotiate

Negotiations

Once the promoter gets the money into his bank account, the real journey begins in utilizing that amount judiciously for the cause it was raised. Hence, it is very important for you to deliver on your promises made to the investor

Once the promoter gets the money into his bank account, the real journey begins in utilizing that amount judiciously for the cause it was raised. Hence, it is very important for you to deliver on your promises made to the investor

Delivering on promise

The importance of cash flow forecasting cannot be overemphasised in business. It helps understand if the business is making a profit, allow planning for unforeseen situations and making better use of excess cash

The importance of cash flow forecasting cannot be overemphasised in business. It helps understand if the business is making a profit, allow planning for unforeseen situations and making better use of excess cash

Forecasting cash flow

Forecasting cash flow

Emotional control is often considered a skill to be successful. Emotional connect with a particular business, a vertical, a team member or an employee could turn out to be negative in maintaining the overall health and scale of an enterprise.

Emotional control is often considered a skill to be successful. Emotional connect with a particular business, a vertical, a team member or an employee could turn out to be negative in maintaining the overall health and scale of an enterprise.

Controlling emotions

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