By Iongwa Mashangao, CLI Partnership Manager
It all starts with a sellable, fundable or bankable idea. It is also said that no money no project. In any business, cash is king. Young leaders need to be equipped with financial education and money rules.
The list of alternatives for funding young entrepreneurial leaders’ business ideas, models, and projects is limitless. The following are the major alternatives: personal savings, family, friends, small business loans, grants from both public and private sectors, investment capital, Angel investors, patient capital, green money, co-signors, guarantors, and other people’s money.
Young leaders must know their options and be able to identify the best sources of funds for their specific initiatives. They should learn winning strategies and money rules.
Just to highlight the five money rules as follows:
Project It: the ability to project the income, expenses, profit, and cash flow break-even point, timing of cash, the value of the business upon capital investment or exit are all parts of a perfect business design and key to success.
Present It: In order to access other people’s assets whether it is a capital investment from a friend or family member, or securing a business line of credit from your favorite banker, it is all about presentation. Your presentation will speak for you. Learning how to present properly is therefore of paramount importance.
Access It: Knowing how to access other people’s money and your own is part of understanding your options and is key to success. It is important to know what the banker wants to see in terms of financial statements, financial projections, the business plan, know what angel investors need to see, and are ready to negotiate a deal with a banker, alternative leader, or private investor.
Control It: Controlling one’s cash means controlling his/her future. Learning how to set up financial controls for one’s businesses, understanding cash management options, and learn to leverage before he/she needs to. Young leaders must master what comes in and what goes out to be able to control and sustain their wealth.
Manage It: Young leaders should understand that they are not their businesses but rather they need to manage their businesses. They should learn to orchestrate their future through profit mastery. They should know how to manage their cash, expenses, currency, accountant and profit.
CLI intends to enhance young Congolese entrepreneurial leaders to strategically achieve their daily private and public victories by acting entrepreneurially in their day to day undertakings.