How to ask for Money

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I’ve run this workshop in over 100 countries and have been fortunate to gain great insights as I present in the economic development, entrepreneurship, small business development, and workforce development arenas. In that space, you learn that there are circles of influence as well as certain key words and terms.

Entrepreneurs may try to enter that space looking for support, advice, or seeking funding. Occasionally there may be a disconnect between the terminology and the approach of how to go about it.

To ask for money you may be able to say, “I just need to ask for money” and it is that simple. But it’s not that easy, in that you need to be organized with your financial projection and history, and of course, a financial statement.

You may also want to think about:

Startup costs, the assumptions and where they come from, how realistic they are, your average sale, your average transaction, capital stacking or how you would plan to raise the total capital you need. There is also what I call Milestone Funding — how much money do you need to accomplish what, by what period of time, from what source. The most important factor is the story you tell about your business.

Most funders will not tell you up front that it is never about the idea — it’s always about the people. An investor or loan officer or committee will invest in the A Team with the B Product, but never in the B Team with an A Product.

Many entrepreneurs spend their energy trying to show how their product is “A,” meaning top notch. Meanwhile, the investors or funders are looking at whether you are a top-notch individual. I’m not talking about you as a person, I mean your ability to implement, to build a team, build a company. These are skills that could be gained or lost on your journey.

BEFORE YOU GO

We see our blogs as opportunities for dialogue. Please share your thoughts as comments.

1. What can you do to be prepared to ask for money?

2. What can you have ready from your end as far as documents, a story, or a presentation?

3. What other tools have you used to stay on top of things?

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Faris Alami is Founder and CEO of International Strategic Management, Inc. (ISM). He works internationally, presenting Exploring Entrepreneurship Workshops and other entrepreneurial ecosystem — related ventures.