Funding, Knowledge, Marketing and all that Jazz

Being an Entrepreneur is tough in anyone's language. South African Entrepreneurs have some added disadvantages at present and I will list just a few here:

First challenge : Access to funding :
I really do not care who differs from me but this is a fact: BEE is a problem for White entrepreneurs. It restricts them from getting funding from government organizations and banks. Banks denies this but it is a fact that they look differently at applications using colour as a measurement. I am just stating this as a fact and will give possible solutions to this later in the article.

Second Challenge : Knowledge
Here I am targeting the whole spectrum : Start up Entrepreneurs think that once they have a business plan (who someone else probably wrote) and a bit of money (in all probability their pension money)they are rearing to go. Oops _ 6 months down the line the boat has sunk ! They did not have the necessary business acumen and basic financial and marketing knowledge to run even the basic requirements of a business

Third challenge : Marketing. I saw this note on one of the social media groups I am involved in : We are an e-learning organisation. Why do we struggle to find suitable customers?" This is the problem every Entrepreneur face at one time or another - mostly all the time

As one of my good friends remarked the other day : I am very blunt sometimes and like to call a spade a spade. Why ? Because since I left the spade in the shed last time it did not turn into a rake - it is still there in all it's glory and it is still a spade !


Lets discuss some solutions to these challenges:
1 Funding: Face the Giant. You cannot back down because some things in life are a given. Accept the following: Banks are not really there for Entrepreneurs. The DTI is a joke.
The process to find out you cannot get funding in the normal banks run something like this : Visit the branch and see a consultant. (1 to 2 days) Given forms (sometimes) and explain they want a business plan. No pre-approval discussions. You go away and pay a ridiculous amount to someone to draft the plan. Back to the bank (3 weeks later) Waiting...waiting........waiting....... 4 weeks later: sorry - declined......Getting my drift? This is totally counter productive. So what are the options?. 1. Accept that you are not going to come right through official channels. 2. Look for alternative funding: Friends, Family , Extending your bond. It all starts with a proper businessplan. Preferably done by yourself with the right help. Someone interviewing you for half an hour and then writing your plan is not the right help.

2. Knowledge : You do not need a degree - In fact more business fail that were started up with people with MBA's than any others - my perception. MBA is the one degree that anyone who has it will tell you this within the first half hour that you mee them. It is for the show only - my perception. You need to get practical knowledge and a coach that has done it. Make friends with someone who runs a similar busines and spend some time with him/her. Will you fly to Cape Town with a pilot that has done a masters degree in aviation and have not flown before ? I rest my case.

3. Marketing : Draft a proper marketing plan - again use an expert that has done it before. A website is not a business. In fact serious business needs that as the last resort. Flyers and ads in the papers does not make a business. You have to have a strategic marketing plan and I say again: Enlist the help of an Expert. Nothing will happen until you have sales. This mostly take time and your cash flow projections need to take cognisance of this fact !

Some more Entrepreneurial Jazz soon : What can I do now to keep the wolf from the door ? To follow