- May 13, 2013
- Posted by: Fola Daniel Adelesi
- Category: Uncategorized
You may have a very good proposal and you may have done all that needs to be done in a business proposition but there are other things that go beyond the proposal you are writing. I have heard about very intelligent people who came up with nice proposals that you can barely question and at the end of the day, they got the money they were asking for and blew it on things they never mentioned in their proposals. There are so many people who get business funds and spend nearly all of it on personal and very unnecessary things. When that is the situation then trust becomes and issue for any potential investor or partner. One question that will always be on the mind of investors is, ‘can we trust this person to do what he says he will do when he gets the money?’
If you want to buy a very nice car you should do the business first and make the money before thinking about buying a nice car. So many young people and every other person in business really need to build their trust level with the people they want to work with. When I was writing about some of the key issues in proposal I mentioned experience and this is one of the areas where the experience counts. People will not have any problem giving you money if they know that you have handled that kind of money before and you did not mess it up. But when they know that it is the first time you are seeing that kind of money, it may be a bit difficult for some people to trust you.
It is not that people cannot give you money at all when they do not trust you. They can still give you money but there are other things they will do to quickly make sure they can retrieve their funds when you start deviating from the plan. Some investors insist on being a part of the day to day running of the business that they want to put their money in. that way, they know how much comes in and how much goes out. As a matter o fact, you cannot sign out any money alone. You have to take money with the consent of the partner or investor. This may come with a lot of bottlenecks for some businesses because the investor may not see the need for some of the things you want to buy and they may be really needed. At that time, you are particular about putting out all the funds needed to get things done and then wait for patronage to make more money. On the other hand, the investor who might be a typical manager might be concerned about putting out a little money first, make more money and then add more money. If you are ready to deal with the checks and balances that come with trust then you might also get the funds you want.
All over the world today, trust is a big issue. There are those who have been given money and they just vanished after getting the money and the investor automatically loses money. Some people even think that they should not invest in start ups because they think that start ups have more issues compared to established businesses. Some others may go as far as asking you to sign a document restricting your movement while you have their funds. There are people who can give you the money you want but once they do not trust you then getting the funds will be hard.
You also have to remember that you cannot force people to like or trust you. You have to earn their trust. When you notice that you are trying to get funds from someone and your proposal seems perfect then you may want to check out the trust level. If you notice that trust is the issue then you should work hard on being trusted. It may take a while. You may have to go through some little tests but you will earn it over time. In a situation where the people who want to invest in your business are asking if they can trust you, then you tell them how open and transparent you want to be. You can ask them to appoint an auditor of their choice to audit your reports. You can constitute a board and your investors will be the members so that you report to them regularly. One of the partners of investors can also be a signatory to your accounts. I will tell you that this does not come cheap but you may want to bear it to get the funds needed and to succeed with your ideas.
When trust is out of the issue, you have very little to worry about. Build your trust level with business partners, associates, investors or sponsors to get going!
Fola Daniel Adelesi
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