How to turn down money; keep your company – and your soul!
Author : Writer at Chatur Idea
Posted : 2 years ago
How to turn down money; keep your company – and your soul!
14Nov, 2016

You may remember the feeling of helplessness from the experience of running a business with an ultimate cash crunch. The feeling was quite scary, isn’t it? Yes, when it comes to money, you shouldn’t h the risk of having a wide gap between the perception and the reality.

When you run a business, always remember that there is a big difference between the scales that we use for personal expenses and business. An amount which is sizeable from the point of view of personal liability is minuscule for business. The loan of 50000 USD is sizeable for personal expenses, but it is not sufficient for businesses.

The gap between the perception and reality

When you start the business, you approach investors. To your surprise, 80 percent of the entrepreneurs (especially startup company owners) think that they are the most sincere and hardworking people in the lot. They have launched the best product in the category that will be an immense hit in the market. There is a global demand for the product and raising money for the venture is a kid’s play. They build perceptions based on the global reports and so-called market research and analysis.

The reality, however, is totally different from the assumption. You need a lot of efforts to get investors who are really interested in putting money. You approach people who know you. You approach people who don’t know you.  A great time is wasted in meetings with venture capitalists, financial institutions or banks. Everything comes out to be just a waste of time.

People are nice to you; they behave politely and appear absolutely professional. Most of them pretend as if they are extremely impressed with the product or service, and wish to invest. However, heavy cash crunch is stopping them from doing so. Well, you understand the reality behind it.

How to find an ‘angel investor’?

When you are searching for an investor, it is always important to hear the ‘inner voice’. You may call it intuition, gut feeling or sixth sense. The moment you meet the investor, and your inner voice reflects that you are at the right place; 99 percent it is guaranteed that you hit the jackpot. If the investor has a good track record and he has several connections; you can be 100% sure about the deal.

Don’t think that raising funds for the business is impossible. It isn’t quite easy, though!