There is an abundance of investment opportunities, however there are still a lot of SMME’s missing out on these opportunities. The gap between funder and SMME is still visible. SMME’s are generally clueless about what funders are looking for. This calls for intense skills development and training for small businesses to be established in understanding of funders and the processes of funding. This will greatly increase the rate at which businesses secure the available funding opportunities.
The PCC steps to funding readiness.
Prepare
Finding money to fund your business can be a long and daunting challenge. In addition, it is hard to try and predict what potential investors are looking for. There is a large pool of investors for different business ventures. Getting investors on board is largely dependent on the business pitch. Besides the obvious pitch ingredients, confidence and enthusiasm are key. To attract the right investors, you must be able to pitch your business and back it up with solid business and financial models.
Customize
Funders go through several potential investees, and the process can be daunting. Funders experience different challenges such as poor proposals and businesses that lack financial models. Therefore, the business idea must be clear, innovative, and relevant. The “one size fits all” approach can be discouraging to investors. Your business must be tailored. This means having a clearly defined target market, investing in brand building, and having a clear marketing strategy. Innovation and creativity are also important, especially in the current fast paced world.
Commit
Entrepreneurship is a journey that is taxing. The preparation will require that you invest yourself and a large amount of time. This includes research, thinking about ideas over and over and over. A series of trial and errors in the different aspect of the business. In addition, commitment is required in keeping to the vision, especially when certain ideas fail. On the business journey it gets tempting to ditch the vision and think of “something else’ that might be less challenging. However true entrepreneurs know that all entrepreneurial ventures are demanding.
Investment-readiness is essential for SMMES as it is the bridge that provides the financial and fundraising capability that investors and funders expect from entrepreneurs, thereby significantly increasing the chances of being funded. Entrepreneurs need to prepare before approaching investors in order to master their options and gain credibility.