Last week I spoke on Citi FM's "Effective Living Series" and addressed perhaps the number1 question many entrepreneurs ask, -"how do I fund my enterprise?". I started off by:
- debunking some myths surrounding fund raising;
- highlighted the realities of the entrepreneur's journey which require unique attention; and
- shared practical ideas on how to position businesses to attract investment and flourish.
The key point I make is that there is enough money to fund businesses. However, the challenge, which I find to be very pervasive, is that many entrepreneurs underInvest in their finance function. By this I mean many firms do not have robust finance functions with talent, processes, and strict governanceControls that provide accurate, timely and useful information about the business for analysis, futuregrowth planning and investment decision making.
We cannot realise the potential of our enterprises if we do not address this challenge. Investors can see through financials when they have been created after the fact and do not reflect the underlying business. Once that happens the entrepreneur loses credibility, a very valuable currency in business.