Invest in Yourself to Get Others to Invest in Your Business

 I'm sure you've heard it before, "You have to believe in you, because if you don't who else will?" It's a very true statement. Not only must you believe in your dreams and aspirations, you have to be willing to see them through, and that means work. Because, as another well known saying goes,

 "Nothing worthwhile comes easy." 

It may look to you that others who have achieved desired levels of success have been extremely fortunate or lucky. But even the lucky ducks know how to capitalise on their good fortune. Good luck will only carry you for so long, then it takes work to continue to see you through. Yep, back to the notion of putting in work - again. Even if you have worked hard and reaped it's initial rewards, you'll need to continue those efforts to continue to see the benefits. Don't view these efforts as mere work tasks, consider it an investment, in yourself! To take your idea or business to the next level (whatever that may mean for you) it takes investment. Before you start running out to get others to invest in your business, take stock of what you have invested yourself. Did you take time to research and investigate your target market/customer avatar, identify your competitors, and determine your marketing strategy and revenue model? Have you documented this in a business plan, if not for outside investors, first and foremost for yourself? Sadly, too many entrepreneurs get emotional about their business idea and rush to find capital to bring their idea to market. Although its great to be passionate about your business, remember it is a business and that's how the majority of potential investors (and customers) will view it. They'll want to know how they can benefit from investing their time and/or hard eared money in you and your great idea. 

I've seen many entrepreneurs introduce their product as the next great thing because "there is no competition". I have never seen that statement to be true, at least not from an investor's standpoint. Although there may not currently be direct or exact product or service competition, there is almost always at least competition from a substitute product or service. For example, although there may not be another smoke-less cigarette, consumers have alternative products they can use to satisfy their nicotine or tobacco cravings. You would need to consider those products in your competitive review for a complete business analysis. Savvy investors know this and may immediately dismiss you and your idea when they are presented with the "Look, no competition!" claim. They simply view it as you didn't take the time to complete your due diligence - you didn't properly invest in yourself. 

Another area that business owners fall short is regarding personal injection in their business. Entrepreneurs looking for funding are unpleasantly surprised when they are asked "How much have you personally invested in this project?" Yes, you should be prepared to show how you are willing to invest 10-30% of any amount you are requesting from a lender or another funder. I can't tell you how many times business owners frown upon making 1 or 2 payments upfront or walk away from funding because they don't wish to list their homes as collateral. 

Contrary to popular belief, this just doesn't apply to new business owners. I had a friend who had been operating his business for over 10 years and now needed funding to purchase updated equipment to keep the business running. Unfortunately for him, his credit was not strong and he wouldn't qualify for traditional funding. He did however own property, his personal home and some existing equipment that would qualify him for the funds he requested. He declined to list his home as collateral and was not able to secure financing. When I inquired why he choose not to list the home, he stated because he didn't want to chance losing his home if he defaulted on the loan. 

Hmmmm. He was honest. But I ask you to look at this from an investor's point of view, this is what they see - business owner without strong belief that he can make this business work; business owner willing to risk my money, but not his own. Too risky. I couldn't continue to work with that business owner - how could you convince a lender to invest in this business when the owner wasn't willing to invest himself? 

Take the time and effort necessary to invest in yourself, whether its thoroughly investigating your market or how to set yourself apart from the competition. Come to the investor's table prepared to show that you believe in yourself by putting your money where you are asking other's to put theirs. Then the passion and excitement about your idea just may be contagious enough to get you the support you need.

Image:Courtesy of Forbes

Article Source: https://EzineArticles.com/expert/Marian_White/213256