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Finweek English Edition - - BUSINESS -

This is the fun­der’s money that you are spend­ing and when asked how much you need to achieve your fore­casted sales, give ex­act num­bers and then round up and al­low for a mar­gin of un­pre­dictabil­ity. So if you need R3 455 901 say so and show ex­actly how and when the money will be used and what the im­pact will be. Round up to R3.5m to neaten up the deal. If you can­not show how much, why, where and when…you are on a los­ing ticket.

The above are a few ideas that will se­cure a good re­sponse with pri­vate fun­ders or in­sti­tu­tions geared to fund en­trepreneurs. Banks don’t and can’t fund you out­side of nor­mal prod­ucts such as as­set fi­nance, an over­draft or very pricy debtors fac­tor­ing trade fi­nance. Ma­chines make their de­ci­sions and so the above is ir­rel­e­vant in their world.

Pavlo Phi­tidis is CEO of Aurik Busi­ness Ac­cel­er­a­tor (www.aurik.co.za).

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