·  In raising start-up capital avoid pitfalls
that can cripple the business. The phrase, ‘
is itself a misnomer. Before anyone – individual or institution – will
invest in a business, they will likely want to know how much of your own blood
and sweat
[not literally!] you have invested in the venture.  You will know when your business has grown to
the level where you need help. Investors seek seven assurances:

That the enterprise is one which workings they
already understand.

Credibility of the business owner, and the
professional track record of the founders. Are you paying tax? Prudent in
management of business costs?

Is there a path and timeline to
profit? No one wants to engage a never-ending trap of their hard-earned funds.

How investment-worthy is your
business plan? Check the health of your financials and be confident – as
advised by their lawyers – that legal documents which are binding are in place.

That the risk-averse quotient
of the business is low. Will it survive political or other upheavals?

How will money be made from the
deal? Dividend? Profit-sharing? Equity Participation or an IPO? What is the
exit plan, should they want to take their money and leave?

Determine their role, as director
on your board or Angel Investor with no value added except for the infusion of
funds. Will they be required to apply their expertise to make your business bigger,
better, and more profitable? At what cost?

·  In preparation to invite much needed
investment into your business, engage financial planning, save, budget, make
wise investments, review, and re-balance your financial portfolio regularly.
Good financial management requires professional skill, ask experts for help
when you need it.

·  The health of your business depends on good
financial management, therefore, have a healthy relationship with money
[like borrowing to invest, not on consumption].

·  Wealth is measured as it is built over time.
Depending on your business model and frequency of revenue intake, track your
income, expenses, assets and liabilities, day on day, week on week, or month on

·  Your life and business are connected, pay
attention to your finances. Financial stress can lead to depression, poor
performance at work, and poor work and family relationships, all of which are
not good for business.

·  However small your business profit, it is
always a good idea to save 20% of it. A certain man – a nation’s Agricultural
Minister – saved a fifth of produce and thus guaranteed food security for the
known world at the time.
Clearly this savings model works. Apply what
is saved for use in exigencies.

·  Treat your business like a flourishing plant. Set
money aside to feed it, turn the soil and water the ground. Keep it healthy and
watch it grow.