How To Raise Capital For A Small Business
Raising capital can present a challenge for entrepreneurs starting a business. Steven Morgan, ED.D, President at the University of Laverne, presents helpful business tips to get you started.
While universities are a little different than many private businesses in how they raise money, as president, I spent a lot of my time fundraising. I was constantly seeking funds to support the University of Laverne. To help us construct new facilities, to help us hire quality faculty, to help us provide scholarships. What I learned was the universal link in seeking funding is that people are looking for a return on their investment. So if you are an entrepreneur starting a new business, people are interested in: “What's my return going to be and how likely is it that I will receive that return?” When I am looking for people to give gifts they also want to return. It's usually not a financial return, but it's a satisfaction that they have; investing in an organization that makes a difference, that helps prepare young people for successful lives. If you are looking for money for a business those you are approaching are looking for a return on their investment, but also they're looking for a level of satisfaction that they have helped start something that is going to make a difference and that will be successful. Successful investors look carefully at the business plan, the chances for its success, and the reputation of the leadership of the organization. If those three pieces are in place, you will be successful raising the funds you need.