NB: This is the first of a ten part series based on an e-book I wrote few years back. Subsequent parts are published at weekly intervals – in the “Entrepreneurship” category.
This post is based on my personal achievements. Like I often say about my written works, this is real life experience – not textbook theory. Without offering WIIFM (What’s In It For Me) answers, people will either NOT help or they’ll STOP helping you. This article explains how you to get others to willingly give you money/support for your business. It also highlights a major mistake that prevents many entrepreneurs from getting such help.
Having Adequate Capital from the Onset Can Hurt – Rather Than Help – You
First of all you must understand how to view your lack of money or capital. Know that it is not necessarily a bad thing. Indeed, quite often it can be a blessing in disguise – especially if you take advantage of it to improve your ability to get what you want.
A lack of money drives people to take personal action. The feeling of insecurity that arises from not having the means to purchase what you want can be a great motivator. In contrast, when a person finds he has virtually everything he needs at his disposal – especially money – his inner love of ease has a tendency to kick in.
Except he’s a rare type with focus and self-discipline, he’ll relax, and fail to push as hard as necessary to really make things work as they should.
Historical records of the lives of past successful entrepreneurs suggest this to be true. Indeed, many who grew their business into international reckoning openly admitted when interviewed that a lack of adequate capital got them that far. They literally had to “claw their way up to success”.
That experience taught them to find ways creative ways to get things done without spending money, and to be prudent in using what they had. This enabled them get more done with less, and they built giant corporations using those hard earned skills.
Many also said they believed if they had had enough money at the start, they would not have been forced to develop the skills that helped them growing their companies cost-efficiently the way they did.
Make It Easier To Get Help By Learning How to Make Money without Money
The above is why Dan Kennedy said in his book titled “How to succeed in business by breaking all the rules”, that he believes it helps to experience a lack of capital. In his opinion – which I happen to share based on my personal experiences/achievements – if you cannot make money without money, you cannot make money with money either.
Dan’s advice to people YOU plan to ask for money, is that if they want to back an entrepreneur, they should pick one who has shown that he can make things happen without adequate capital. Not one who insists he needs money before he can do anything!
TIP: Go out and get some experience under your belt, before you go asking for help.
You’ll need to do enough to demonstrate you have the passion to make your ideas work. Have evidence of some tangible results you’ve achieved with your own efforts. That way, when you speak with those you want money from, you’ll sound more genuine.
They will see that you have an emotional investment in your business. And it will make them believe you’ll do your best to make it work.
Getting Other People’s Cooperation: ONE Big Mistake to Avoid!
The story is told of a startup entrepreneur who struggled to find people willing to invest in a business idea he had, even though they had the money. Every person he approached simply did not show any significant interest.
For a long time he could not figure out why these people – most of who were friends and relatives – were not forthcoming despite the repeated attempts he made. It took him a while, but he eventually realized it was due to a mistake he was making.
Simply put, he was NOT addressing the issue of WIIFM, which means “What’s In It For Me?” Addressing this question will effectively help you identify what you need to do, to get other people’s cooperation in any endeavor you embark upon.
Basically, you have to think of the interest of the other person. Ask yourself:
“What do I give in return for the money I want him/her to invest or donate or lend to me?”
Depending on the exact nature of the proposal you have in mind for a particular person, you may also have to think up an answer for this question:
“How will the person giving his/her money get it back or out of the business?”
Derive realistic and practical answers to the above questions, giving due consideration to any relevant possibilities that may occur with each individual. Then go to each person and make your proposition, offering answers to those questions mentioned above.
I am of course assuming here that you will have every intention of acting with honor and integrity in approaching these persons. If that is the case, you’ll find that by persisting, one or more of those you approach will eventually say yes.
Build Mutually Beneficial Relationships With Others – Before You Ever Need Help!
It goes without saying that the answer you want may not come immediately or overnight. It could take time. And sometimes you may have to gain the trust and confidence of a person you want help from. Harvey Mackay wrote a book on this titled “Dig your well before you’re thirsty”.
In other words, before you ever have to ask others for help, make yourself useful to them (without being manipulative) in as many ways as possible. Forge relationships with people you believe can help you with your goals. Find ways to help them get what they want as often as the opportunity presents itself – and you’ll gain valuable friendships.
Over time, you’ll find that when you have a need it will be easier to approach this network of people to get help. Quite often, even those who cannot help will be willing to tell you where you can go. And they may even gladly give you recommendations, referrals or endorsements!