Why You're Not Getting Money For Your Business and How To Fix It

So you're probably seeking money for your business or idea.

Based on my previous article, which can be found here, I'd like to focus on some things that need particular attention.

I first of all would like to remind everyone that getting funding, especially nowadays, is not as easy as it sounds. Moreover, there are multiple procedures that a business owner goes through on the backend for those who are looking at your company to qualify it for the money that you're looking for.

It goes without saying that getting the money is possible but requires a certain level of preparation and cooperation. Failing to meet the basic demands of such lenders or investors will keep you constantly chasing your tail without any positive outcome.

While keeping it simple, I'd like for you to pay attention to the following parameters:

1. It's true that most lenders or investors like to put money on functional and proven businesses, they are also looking to try new concepts that are well thought out and have huge upside potential to turn into something lucrative
2. Any new business ideas or concepts need to be put together very meticulously and thoroughly if you're going to pitch your idea to any investors or lenders
3. Regardless of what size your business is or is going to be, the team behind the scenes are what pushes the credibility of the concept or idea forward
4. Never walk into a pitch without having a tangible and realistic exit strategies, so that lenders and investors can identify potential risk management solutions in your business
5. Although many say that you only need an executive summary, a business plan with strong fundamental market research and financial projections are a necessity. No one lends money to uncertain theories, but only to those who have a structured plan that lays out the possibilities by way of documenting every detail possible with credible statistics and proven research
6. Last but not least, be ready, willing and able to cooperate with the lender or investor while they are conducting their due diligence. This means that when they ask for certain documents, reports or even answers, you should be ready to provide it quickly without hesitation. A lot of lenders and investors look at this step as a relationship building exercise. In most cases, a lot of businesses disappear during this phase, only proving to themselves that they simply aren't ready for funding

Furthermore, your business needs to have a strong competitive advantage or else, anyone can simply 'copy' it and send out loan applications. If it were that easy, money would be easy to come by.

You will in most cases be asked if you had applied with other institutions and lenders, at which point, you will need to be honest and straightforward. This means, for instance, if your credit is bad, you need to explain in elaborate detail as to why it is.

Keep in mind, no lender or investors like when deals are 'shopped' around. This move looks extremely desperate and your file will reach the bin faster than they'll say 'no.' Be sure to apply with one entity at a time, even if it takes time.

Although being brutally honest can sometimes seriously jeopardize your chances of funding, it will only help you tweak the things you need to fix in order to have the best chances of getting the money for your business. You'll thank yourself later down the road.

Here's a final point that I'd like to make. For those who keep saying 'no upfront fee' etc etc, you're simply pushing any chances of funding away. This not only shows potential lenders or consultants who are one degree away from capital sources that you're not willing to cooperate with any fees or due diligence costs that may be mandatory but it also shows a sign of weakness.

It's a standard business practice to expect to pay costs at certain points and you will have to be open to it in order to have any chances at getting money. Yes, at certain times there are no costs, but if you're seeking $1 Million or more, be more realistic and think of someone else asking money from you, yet they're very hesitant to even spend a dime. I'm confident that you won't think twice to sway away from the deal. Lenders and investors think the same, don't undermine their expectations.

If you're truly struggling and don't have the necessary costs to put up when required, it is strongly advised that you continue saving until that time that you're ready to move forward.

Hope this brings a better perspective for those seeking to get funding. Good luck!