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How can I raise finances for this business

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This question gets asked over and over again on this platform. I trust you did review past responses from mentors on this same type question? In any event, here is my standard response to how to obtain funding (financing) for your business:

The statistics on financing make it very clear – almost every small business must obtain initial capital (money) for your business from those people who know you such as family, friends, and school alumni. Someone who does not know you will not give you money. They do not know anything about you, your background, education, prior experience in running a business, etc. When someone invests money in a business, they are investing in the person and they must know something about that person.

If you want to raise money from a bank or investor or someone who does not know you, then you will most likely need to have a very compelling and well-written business plan with financial projections that clearly show how the business will be profitable. Outside people do not invest without being convinced that you can earn a profit. The reason is simple: They expect to get paid back and they cannot get paid back the money unless you have a convincing plan that demonstrates your ability to earn profits (Total revenues are more than total expenses for the reporting period).

It also helps if you have experience with the business – you worked in the industry or you have been trained. Additionally, most sources of money will not give you the total amount you need. It is up to you to come up with about 20% of the total startup cost of the business. You have to take on some of the financial risk if you expect someone else to give you money. Having some property or assets that you own can also help since this serves as collateral to help guarantee the loan or investment. It boils down to your ability to execute and create a profit from the business. You must convince the other person that you will generate enough profits to pay them back.

If you can somehow get to first customer on your own money – this proves your concept and it shows that you know how to execute and run a business. Having a customer helps confirm your idea is valid and it makes it easier to obtain money from people outside of your family and friends. It starts with you and the people you know and you have to do everything you can to get to first customer to validate your idea. If you want money from other people, you must have a plan that shows profits which is the basis for paying back the money.

If you need help with developing a business plan, here are some useful links: https://www.sba.gov/business-guide/plan-your-business/write-your-business-plan | https://www.dummies.com/book-extras/business-plans-kit-dummies-5th-edition-resource-center/ | https://www.score.org/resource/business-planning-financial-statements-template-gallery

YouTube Videos: https://youtu.be/ZEMbKzy7FD8 | https://youtu.be/Q4egHg2WkhE | https://youtu.be/Fqch5OrUPvA

Good luck.

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