So over the last week a video has been trending of a young man frustrated with the challenges of running a business and very pointedly (arguably with a bit of entitlement) requesting R5m instead of “solutions” for his business.
As entrepreneurs we really need to stop asking for money. And to stop expecting it.
Firstly, it’s not actually what your business needs today. Funding with no consumer base, no brand trust, no plans for scale; is all pointless.
Secondly, you probably won’t be able to give it back in the time period and multiple return an investor would want. Funding isn’t cheap.
But most importantly, it’s not coming.
Especially in South Africa, it very rarely exists.
Particularly for businesses without solid business plans, without real traction and a path of exit lined up.
So in the words on my mentor, York, “don’t seek funding, seek clients.”
The number one investor in your business will always be a customer. They will have the highest ROI!
Think instead how can you build a minimum viable product that can get you launched, some valuable insights, and some initial capital. Think instead how you can scale through adding more and more clients to your base.
Funding isn’t going to save you.
Sell your way to the funds you need.
It will give you cash, no reliance and it will grow your brand.
Funding makes so much sense after you’ve launched and have traction. When you need it for the next level of growth. And when you have more leverage.
No one is going to give you R5 million.
So perhaps with the same energy you demand the world to give you cash, convince them to rather want to buy from you.