October 8th, 2014.
Business Funding: What Would Alan Sugar Do?
The name Alan Sugar has become synonymous with entrepreneurship, simply because the man himself is a legend in the business world. There is a lot that can be learned from the way he drives business forward and ensures that his profits stay on the rise.
Here are a few things we can learn from Alan Sugar in terms of business funding:
“I am sick and tired of this free-lunch culture, and people asking, ‘Where can I get some money? How do I borrow that? Who’s gonna fund me?’ It’s the disease that caused banks to collapse.” – Lord Alan Sugar
When it comes to receiving funding, you need to put in the hard work to ensure that you get it. Connections, promises and business lunches won’t help you to secure millions in funding, unless this is supported with the documentation, facts and financial spreadsheets. Stop wasting your time schmoozing at events and put in the work you need to get your business to a level where lenders are happy to provide you with funding.
“People who go to capitalists with brainstormed ideas need to be aware that they’re dealing with gamblers who will take 40 or 50 per cent of your business” – Lord Alan Sugar
It’s the old “spend money to make money” spiel, but Alan Sugar says it exactly like it is. The more risky your business venture is, the more you can expect the lender to want in return – they need to be able to cover the risk. By this reasoning, if you have tangible business profits and are able to put a lump sum towards the loan then you are likely to be greeted with lower rates.
“Set simple goals and don’t give up until you do it – and stop dreaming that someone is going to give you something to do it.” – Lord Alan Sugar
Work with what you’ve got to the very best of your abilities – you may get additional funding, you may not. By staying within your means and reaching for achievable goals you aren’t going to find yourself struggling to stay afloat. By hitting all the little goals, not only are you showing yourself that you’re progressing but your business will look much better to lenders as well.
“Cut and run. You can’t flog a dead horse. You’ve got to know when enough is enough.” – Lord Alan Sugar
What are you trying to gain funding for? Pumping more money into a failing business isn’t going to get you anywhere. Make sure you have a proper plan for what you’re going to do with the funding. Look at your business and figure out which areas need a cash injection and which should simply be cut loose – you could end up saving yourself a fortune by just looking at the task as logically as possible.
“I only take risks in things I understand. […] Stick to what you know. Business is a risk.” – Lord Alan Sugar
Finding the right lender is essential for your business. Lenders know that they can lose their money just as quickly as you amassed them, so they will only take risks in specific industries. Learning who lends money for what type of project or situation can be tricky to find out, but it is essential to ensuring that you receive the best package for your needs.
Instead of spending all your time focusing on finding the best rates and the perfect lender, why don’t youenlist the help of a commercial finance broker? This can give you the freedom to continue focusing on your business, while experienced brokers find the financing you need to succeed.