CAPITAL INSIGHT Part 4 of 7

-A +A
0

Last week you were exposed to the fact that money isn’t real and that it is only an idea. Well this week we will explore how this relates to what my conference attendees learned and the subject of developing your inner CFO.

The Truth about Raising Capital

“The Secret to Developing Your Inner CFO�

Part 4 of 7

I recently hosted a supercharged teleconference for 100 entrepreneurs titled: How to Raise Ten Thousand a Week without A Gun!  Two of the prerequisites each participant was required to qualify for were (1) to be in business for a minimum of three years and (2) submit a brief explanation of what they considered the key contributors to raising capital. Without question the key component mentioned was management. When the initial promotion for the event went out, one of my strategic partners became rather nervous. He was concerned our requirements were so specific that we might not be able to meet our goal of 100 participants, and that we should make it a general event for everybody. I mentioned to him and for the sake of everyone reading this please pay close attention to my response; “We are not interested in doing business with everybody, only specific somebody’sâ€?. This is vital because when you are raising capital the managing body must be able to specify not only their product/service being offered but who they are interested in doing business with. Not only did we accomplish our attendee goal, but we exceeded it by 200% (200 people requested to participate). As you read on the purpose for my particular two prerequisites will become apparent.

Last week you were exposed to the fact that money isn’t real and that it is only an idea. Well this week we will explore how this relates to what my conference attendees learned and the subject of developing your inner CFO.

As previously mentioned almost every participant indicated that the key area was management. I required each person to be in business for a minimum of three years, because in the fields of human and business development, experts agree that three years are what they refer to as the “trial period�. Anyone who has been either married for a long period of time will agree that the first three years of the relationship were plagued by an onslaught of petty disagreements. The same occurs with business. This is why you have so often heard from the (SBA) Small Business Administration that most businesses will fail within the first three years of coming into existence.

In the second installment of this series I gave a step by step process of how to convert an idea into its’ financial equivalent. If you recall one of the steps is to write it down so that the process of moving from a thought to an idea is accomplished. This is also a way to establish whether a person is committed. I knew that if a potential participant took the time to both think and complete my pre attendant exercise they would respect not only their goal of raising capital, but my time as well. Beside, each person had to pay a non refundable deposit and submit an application to be approved by me to participate. Now, I am no psychic, but I can almost read some of your minds asking the question of; “how does all of this relate to the development of my inner CFO and raising capital�? “What is a CFO?� Am I correct, well here we go!

During the event I shared that money has a set of indisputable laws that anyone can learn, whether young or old, experienced or not. That set of rules I initially sold in a small book entitled, The 7 Indisputable Laws of Money.  However, before I lay them out for you, I would like to offer a brief definition of what a CFO is. The term CFO is an acronym for Chief Financial Officer; a fundamental aspect of management. Whether you are a one person shop or the head of a major company, understanding what this component or individual does is a key to success and raising capital. Just to be clear, Webster’s Dictionary indicates:

CFO- Chief Financial Officer, An organization's top managerial and financial accountant. Controller and Guide of an organization’s cash flow.

Financial management is an absolute requirement if anyone wants to raise money. My accountant gave me this quote when we first met many years ago; “accounting leads to accountability�. With that being established here are the seven laws:

1. Money is only an idea.
 
2. Money only exemplifies what type of individual or organization you are.
 
3. Raising money for any endeavor, whether for profit or non profit is an effect and never a cause.
 
4. Money always follows the behavior of management.
 
5. Profitability starts at the planning stage.
 
6. Money flows in direct proportion to the level of service that we perform.
 
7. Money has the ability to enrich or destroy an individual or organization.

Every person who forces life to pay what is asked must take complete responsibility for their development and financial health. Therefore as your family, company or organization’s CFO apply these set of laws as they relate to both your personal and business lives in order to achieve the financial goals or capital desired.

In closing, I would like to make clear that raising capital is both a game and a journey. Each includes a sense of fun and frustration. But as with any game if we can just stick it out, select a specific role to play, learn and remember the rules eventually we will win.

 Join us next week and learn: "How to Help Your Lender Say Yes!"

Greg Jones is CEO of GJ Presents, Inc, Business Development Advisor and author of the book, The Art of Raising Capital.

He can be reached at greg@blackstarnews.com

Greg Jones' CAPITAL INSIGHT is brought to you by Winning Strategies & Associates, LLC - Contact Brenda@blackstarnews.com

To subscribe to or advertise in New York’s leading Pan African weekly investigative newspaper, please call (212) 481-7745 or send a note to
Milton@blackstarnews.com

 

Also Check Out...

How Sweet It Is
MEDICAL CENTER TO HONOR SIERRA
HUNDREDS HEAD TOWARDS SOCIAL MEDIA
CPJ Welcomes Release of US
FORMER DEATH ROW INMATE GETS LAW
The Ray Rice Factor