Gauging Whether You Need Investment

It can’t be emphasized that money is not a default solution to the things that hold us back as entrepreneurs. We’ve spoken at length on different types of investment but let’s take it a step back…

 

Do you even need investment? How do you honestly and logically gauge this so you’re not feeling like a self-saboteur? There are various factors that could lead to your failure despite chunks upon chunks of money thrown at you by an investor. Not saying that this list is by-the-book, but we know a thing or two about this maze of entrepreneurship. Allow us to say this: many entrepreneurs make the wrong assumption that financial investment is a definite means to a guaranteed great end. The truth is that it can be a distraction from other factors that pose a risk to you. So here’s our little playbook on how to determine whether investment is or not for you:

 

‘Makes ‘cents’’ – But does it? Does it really? That generous contribution, we mean. They say ‘anyone can give you money’ and that is why you have the option of onboarding investors, seeking loans from banks, SACCOS, microfinance firms or even hitting up your friends or family. Ask yourself if this person will offer you financially strategic advice that is aligned to your vision. If it doesn’t make sense; it probably won’t make cents!

 

Value Add – What insights does your business need that you can’t source independently without engaging an investor? The internet hosts a wealth of it and it is all at your disposal. You can engage authorities in your category without compromising your company’s equity. So ask yourself, do I absolutely, if-I-miss-it-I-miss-out, have-to-part-with-part-of-my-company-for-his-advice kind of need it?

 

Goals – Like most amazing things, explaining fully the goal of it is never an easy thing to do. You are not obliged to share the things you want to accomplish in your business. We have seen tonnes of people who founded their own thing and sought other forms of funding; all the while keeping to themselves and still come out tops. Thank us later because this is the millennial ‘Succeed in Silence’ demystified.

 

Getting Frisky – When an investor expresses interest in your biz or idea, feel free to take your time to do a complete forensic (allow the drama) on their background and how they conduct business. Believe it or not, there exist rogue investors who will be dead weight at your feet as you fight to keep afloat.

 

So have very honest conversations with yourself, weigh your options of funding and then make the call on whether an investor is the way to go.

 

You will make the right call… we just know you will!

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