Success in raising capital for your business is very practical and easy. It often leaves clues, and if you look closely you will find a trail. There are a number of simple rules you can follow to significantly improve your chances of raising capital. Some of these rules are based on plain, old common sense. Some have been validated by the bitter experiences of other entrepreneurs. If you follow the golden rules in this lesson, you will avoid some of the most common mistakes and roadblocks people face when they try to raise funding.

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DEPARTMENT OF BUSINESS AND
MANAGEMENT STUDIES
BY
NGANG PEREZ (MAJOR 1)
PAN AFRICAN INSTITUTE FOR DEVELOPMENT
-WEST AFRICA (PAID-WA) BUEA
Conference paper

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THE 10 GOLDEN RULES OF RAISING CAPITAL
1.0 Brief Introduction: Success in raising capital for your business is very practical and easy. It
often leaves clues, and if you look closely you will find a trail. There are a number of simple
rules you can follow to significantly improve your chances of raising capital. Some of these
rules are based on plain, old common sense. Some have been validated by the bitter experiences
of other entrepreneurs. If you follow the golden rules in this lesson, you will avoid some of the
most common mistakes and roadblocks people face when they try to raise funding.
1.2 LEARNING OBJECTIVES
By the end of this session, participants should be able to:
➢ Why an entrepreneur, needs not just to follow the money but understand
numbers
➢ Identify the three main sources of finance and its merits and demerits
➢ Outline clearly the 10 golden rules
➢ Analyze an investor to know if the expected capital will take a longer
duration to be delivered or will not be delivered in bulk or will not be delivered at
all
1.3 DEFINITION OF KEY TERMS
(a) Capital: Adam Smith defined capital as "that part of man's stock which he expects to afford
him revenue". It is the financial value of assets such as funds held in accounts or cash on hand as
well as machinery and equipment used to produce goods and services.
(b) Pitch: A pitch is a presentation of a business idea to potential investors. More broadly put,
people pitch a business because they need resources. If the goal is to raise startup cash, the target
of the pitch is an investor. Other businesses pitch to potential customers to sell their products.
Finally, some organizations pitch because they need a partner or resource to help them accomplish
their mission.
(c) Business Plan: A business plan is a formal written document containing business goals, the
methods on how these goals can be attained, and the time frame within which these goals need to
be achieved. It also describes the nature of the business, background information on the

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organization, the organization's financial projections, and the strategies it intends to implement to
achieve the stated targets. In its entirety, this document serves as a road map that provides direction
to the business.
1.3 MAIN CONTENT
If you have not raised capital, it is likely that you are breaking one of these rules, but if you play
by these rules, you can significantly boost your chances of raising that capital you are looking for.
This lesson is centered on the golden rules of raising capital for any business no matter the stage
of the business in its life cycle. These are basic principles that should always be followed to ensure
success in the course of raising capital.
1.3.1 The rule to follow the money
The first golden rule of raising capital is to follow the money. A lot of entrepreneurs are worried
and asking so many questions regarding the success of their business. Majority of these worries
stem from the fact that; they don’t have available finance to sponsor their business operations.
Some of such questions includes; Where do I find investors? How do I find these investors? Who
are these investors? Why can I not get somebody who is willing to sponsor this my project? These
and more are examples of the million-dollar questions, that go through the mind of entrepreneurs
every day. The answer is simple and that is the reason why you are attending this conference. The
first thing for you to do, is to follow the money.
A smart entrepreneur should be asking already, but how do I follow the money? The answer is
also simple. Focus on those investors and organizations that are already giving money to other
entrepreneurs. If they have been given money before, they are very likely to give it again. This is
the logic and the confidence to act on the premise that if he did it before, he may likely do it again.
There are over 3000 funding organizations that I know who are very active in the business of
giving money to entrepreneurs, if you believe.
If other entrepreneurs have raised funding, all you have to do is to follow the money. But again,
this is easier said than done. I must admit that, it is not an easy task. Yes, it is difficult and
sometimes discouraging but it is not impossible. You will need to define your ideal investor profile,
so it becomes easier to know which type of investor to target. You will need to do a lot of work,
and private research to come up with a condense list of organizations, that invest not just in Africa

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but in your sector of business operations. It will serve as the foundation, upon which any pursuit
towards an investor will be a well calculated move for a favorable response. All you have to do is
to follow the money, because if they invested before, they may likely invest again. Are you there?
1.3.2 The rule to don’t ignore the easy money
The second golden rule of raising capital is, don’t ignore the easy money. There are generally,
three main categories of funding sources, but what I find is, most entrepreneurs tend to focus on
the hardest source, for what reasons I don’t know why. These three sources of funding include;
informal sources and semi-informal sources and the formal sources.
Source: smallstarter.com (2020)
Figure 1.1: The 3 sources of funding
a. Informal Sources: These is money or capital you can raise from your savings, from your
personal funds, from family and friends and well-wishers. This is more like, you using your social
capital to raising funds. The logic here is that, these are people who already know you, they love
you and they may equally trust you. Naturally, it is easier to get money from these sources and at
low cost.
b. Semi-formal Sources: The second category is semi-formal sources. These include business
partners and casual angel investors or high net worth individuals who were introduced to you by
people in your social network or people you know. These people are not fully formal but they are
just in line, between informal and formal. And for these guys, its relatively easier to raise money
and at cheaper cost.

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c. Formal sources: This covers all the venture capitalist, banks, private equity, international
development fund, and other organizations that provide equity investment loans or grants. What I
notice is, most entrepreneurs focus on this third category (the formal sources). But the truth is,
getting funding from the first two sources, that is the informal sources and semi-formal sources, is
not as strict and as rigorous and as demanding like the formal sources. I know that, some people
may not pay enough attention to the informal and semi-formal sources because the they may not
provide sufficient capital for their business. But these are sources of easy money. You may not
have to go through the same effort and sweat and rigor that a bank or a professional investor will
put you through, if you follow the informal and semi-formal sources. What I have come to discover
is that, most entrepreneurs are not using their social networks, people who know you and value
you, people who love you and trust you, are not used to raised funds. It is true, the capital you raise
form these informal and semi-formal sources may not be huge, but the terms and conditions are
far more favorable than formal sources. Another reason is because, you use them for a start, while
pursuing the formal sources. It is very important that entrepreneurs don’t ignore the easy money.
1.3.3 The rule to follow up
The third golden rule is to follow up. This is a shockingly simple rule that a lot of entrepreneurs
just don’t do. It will amaze you the number of people who just walk up to an investor the first time,
and because they didn’t get what they were looking for, they just abandon the investor and never
return. Instead they go ahead and begin to complain that nobody wants to give them capital.
Source: smallstarter.com (2020)
Figure 1.2: Characteristics of follow up

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The truth is, you have to always follow up. Almost every entrepreneur who has successfully raised
capital, did several follow ups before they raised capital. Persistence always breaks resistance and
it always pays. One of the reasons many entrepreneurs don’t raise capital is because they give up
too early and too soon. Most of the people you meet to invest in your business, will not say yes,
the first time and its but normal. If you are asking an investor to give you money, he is going to
take time to come to terms with what you are asking for. People like investors, need time and
pressure to make up their mind. If you don’t follow up, you will likely lose golden opportunities
from investors who could make up their mind in your favor. Not following up, is an indication that
you are not serious. In fact, the rule is you must always follow up until they give you a yes or a
no. If they give you a may be for an answer, then that is a signal that you need to keep following
up and perfecting your business plan or pitch. May be means, they haven’t made up their minds.
If they say yes, good for you and if they say no, you need to find out why they are not interested.
But you should never stop following up until you get a yes or a no.
Following up with potential investors can be very tricky, in fact, if you don’t do it well, you could
end up being regarded as an annoying or irritating person. You don’t want to be that kind of person
to potential investors. Inside my next paper, I will show you some interesting techniques you can
use for follow up that has proven to produce interesting results. You can use these techniques and
of course you are less likely to be perceived as an irritating person. I will show you how to use
some techniques to gradually find your way to the heart of investor that you are trying to win over.
Remember, always follow up, continue to follow up until you get a yes or a no.
1.3.4 The rule to embrace rejection
The fourth golden rule is to embrace rejection. This sounds very strange but it is surprising that, it
is one of the very easy rules a lot of people make mistakes with. Many entrepreneurs are afraid of
rejection. Of course, we are human beings, and it’s a natural reaction to feel bad, and down and
sad about rejection. But here is the most important thing I don’t want you to ever forget. When
you are trying to raise funding, rejection is a big part of the game. You have to learn to embrace
rejection, however not the rejection caused by you. When a potential investor gives you a no for
an answer, you should never take it personal. Every rejection is a big opportunity to learn
something new and valuable that you can use to improve your next presentation or pitch for your
business.

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It is not easy to say embrace rejection but let me give you some real-life examples of stunningly
successful entrepreneurs who had to go through the terror of rejection but ended up as a success.
In 1920, an aspiring young illustrator was fired from his job at a newspaper company. 'You lack
any form of creativity!' his boss told him. Over the next seven years, the artist took on odd jobs to
pay the bills, all while continuing to pursue his dream of becoming an animator. During this time,
he pitched, or presented, his cartoons countless times to banks, motion picture companies, and
other potential supporters. Despite delivering over 300 pitches, he was rejected every single time.
Instead of giving up, the young artist took every rejection to heart and poured over the reasons his
pitches were not securing investments. Each time, he adjusted his pitch and tried again. In 1928,
he finally made a successful pitch to a motion picture company who agreed to use his animations
in a film synchronized to music.
The film was a success and jump-started the career of the young artist, who was none other than
Walt Disney. Through practice and persistence, Disney was able to turn his 300 rejections into
what would ultimately become one of the most valuable brands in the world.
Source: smallstarter.com (2020)
Figure 1.3: How to embrace rejection
If that is not enough, let me bring you more examples of who got rejected several times but
however, ended successful. If they did it, you can do it as well. The founder of thredup was rejected
27 times before he eventually raised over ten million dollars for his start-up. Nick Hungerford is

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the founder of an online investment management platform called nutmeg. After he graduated from
Sandford University, he kept on looking for investors and pitched his business idea 45 times and
all the times he was rejected but on the 46th
pitch, he got the investment he used to start up nutmeg
savings and investment ltd. Just in case you think these are small rejections, then think of Katherine
Minshu. She is the founder of “themuse”, a career development platform. She pitched her investors
for over 148 times before she finally raised capital for the business. These figures may look, not
very significant but there is one other entrepreneur called Tim Westergren. He is the founder of
pandora, an online radio program. Shockingly this entrepreneur was rejected a total of 300 times
by venture capital firms. He went ahead to grow the business and it became really successful.
This kind of information shows you the type of attitude and mentality you need to have when you
are requesting for funding. You cannot say you have tried 3 times or 10 times and it’s not working.
You just have to keep trying as long as you don’t stop, you are likely going to hit the investor who
is going to give you a yes for an answer. There are hundreds of other examples like these from
Google, Facebook, Hotmail, Alibaba and others that were rejected several times before they finally
raised capital. Many of these businesses right now are big names but a lot them, faced a lot of
rejection when they were trying to raise money from investors.
You will notice that all these investors that I have used, are from the developed countries like the
U.S.A, and Europe. The reason I am using these examples for you especially if you are attending
this conference and you are based in a developing market like South America, Asia or Africa, is
because we believe and expect that in places like U.S.A, and Europe, capital is supposed to be
readily abundant and easy to get. These are entrepreneurs from Silicon Valley, but they had to
pitch their businesses several times to raise capital. You can imagine how much more effort you
have to put in, if you are trying to get investors and you are based in these developing economies.
I don’t want you to ever think that because you get 10 denials, it’s enough justification for you to
give up. The key lesson here is, when you get a rejection, it doesn’t mean your business is a bad
idea or you are a looser. It may mean that the investor can’t really see the opportunity in your
business. Whenever you get a rejection, no matter how bad it is, there are three things you should
always remember to do. First is to, never take it personal, second is to learn from the experience
and third is to always ask for feedback so you can improve you next pitch and refine your business
plan.

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1.3.5 The rule to know what you want
The fifth golden rule is to be crystal clear about what you want. A lot of entrepreneurs make this
mistake because they are just too focus on getting the money. In fact, the real trouble starts after
you get the money. I know you think you are in a lot of trouble now because your business badly
needs money. But you will be shocked to know that the real trouble actually starts after you get
the money. You must make sure you are crystal clear about your funding objectives, the types of
capital you are looking for and how much money you want.
Source: smallstarter.com
Figure 1.4: Requirements to be clear about what you want
This is very important because if you don’t follow these procedures you may learn a bitter lesson.
I know of an entrepreneur who took up a business loan with a very high interest rate because he
was very optimistic about the business. But he did not clearly define his funding objectives and
the types of capital that will be best for his business. So, he took out a loan at a crazy interest rate
and that loan wrecked the business. It wrecked the business because, after paying the bank its
interest, the business was actually making a loss. What it meant was that, he wasn’t actually an
entrepreneur, he was an employee of the bank because he was working to pay the bank loan. How
many entrepreneurs are in this deadlock? This is a bitter experience which you should not fall in
to. You’ve got to be careful before you make that move, you need to do your homework and be
sure of what you really want. Clearly define you funding objectives and create your ideal investor

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profile because these frameworks will help you become proactive as you approach investors and
not reactive.
This golden rule is very important because it allows you to recognize a bad deal and know when
to walk away from it. Most entrepreneurs don’t even know a bad deal, all they are seeing is the
money. But like I said, the real trouble starts, after you get the money. It is actually real trouble
after you take the money when you have not actually done your homework. You need to do your
homework, such that when you see a bad deal, you can recognize it and walk away from it. No
entrepreneur wants to tie himself in a deal that will wreck him and his business. You may get that
capital you are looking for but if not careful, you may lose that business you have established, if
you do not clearly define what your objectives are. So, you need to be crystal clear about what you
really want, from every investment you are hunting for.
1.3.6 The rule to know your numbers
The sixth golden rule is knowing your numbers. A lot of entrepreneurs use business plans templates
or they ask a consultant to prepare them a business plan or pitch for a presentation. I am not saying
that these things are bad, but it pools a dangerous problem. I actually help people prepare their
business plans and pitch presentations. But what I find is, when they have an investor, and the
investor ask them to come and present, they always want me to show up. It’s not my business, I
am just a consultant, I have developed the business plan and given you everything that you want.
But they don’t have the confidence to face the investor.
Source: smallstarter.com
Figure 1.5: Know your numbers

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The investor knows that the consultant will not be running the business with you day in and day
out. Investors want to know what you think, he wants to hear from you because you are the person
who will be running the affairs of the business. So, when you do not get involved in developing
your business plan, it’s very unlikely you will not know your numbers and it’s very likely that you
will not be as confident as you should, if you got involved in the process. Every potential investor
will be talking to you and not your consultant. The investors actually don’t care if you created the
business plan from a template. They want to know that you understand what you are talking about.
They will be asking you all the questions and if you are unable to defend what is written on your
business plan, you will not be able to convince an investor. So, even if you don’t know how to
write your business plan, you need to understand how everything works together, you need to
understand what the business plan is all about. You must be able to explain how you estimated the
size your target market, you must be able to explain your financial projections.
1.3.8 The rule to have a plan B
The truth is, as you try to raise funds, there are three realities that could play out. The first reality
is that, it could take longer than you think or expect to raise capital especially if you are going to
formal sources of funding. These guys have all sorts of processes and steps and conditions which
will take longer than you expect. Some entrepreneurs raise capital in a few months, while for
others, it could take up to 1, 2 or 3 years for them to raise the capital they are looking for. So, you
need to have that in your mind. Moreover, because you don’t know when the capital will come,
you need to be working with the limited capital that you have. You cannot keep spending as if its
guaranteed that you will raise capital. No matter how many people have promised you, as long as
that money is not in your pocket or in your bank account, you cannot spend base on expectations
or promises.
The second reality is that, the funding you are looking for may not come in bulk. Let’s say you
want to raise; $40,000 you may not find an investor that will give you all that money. You may
get $5000 first, and after sometime you get another $15000, and the other amounts may come in
small bits. So, all that money may not come in bulk as you expect. Furthermore, because you know
that this is the reality, you should not run your business as if all of the money you expect will come
in bulk. Like I just told you it may actually come in bits. What you need to understand is, when
you are setting your expectation, how much capital do you want, if everything goes on well?

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However, we have a worst-case scenario. Assuming you are unable to raise all the capital that you
want, what is the absolute minimum amount of capital that you need for your business to start and
operate? Can you afford that minimum amount?
Source: smallstarter.com
Figure 1.7: Have a plan B
The third reality is, you may never raise any capital at all. Sadly, this may happen to some people.
When I say you may never raise any capital at all, remember the case of those guys who got
rejected several times. So, it is only a matter of time, but if we assume you plan to raise capital
within 6 months and you are already running into 18months and you still haven’t raised capital,
you may just be unlucky. Now, the fundamental question to ask is, does that mean that your
business will die? Does that mean you will give up on the business? Does that mean you will no
longer run the business? Can you explore some other sources? You need to understand that,
because you can’t really control any of these realities, you need to have a plan “B”. What were
you going to do, if you did not raise all of the capital you were looking for? Will your business
crash? Will you find somebody who can contribute capital and partner with you? Will you scale
down your initial plans and try to grow more gradually? The goal here is to be frugal with the
limited funds you have and always have a plan “B”.
1.3.9 The rule to be pitch ready at all times
The ninth golden rule is to be pitch ready at all times. The truth here is, you will never know when
you may run into a potential investor. You could meet them at conferences, chance meetings, social
events or wherever. The most important thing is that, you need to be able to pitch your business at
all times. In reality, giving your business plan to an investor too early may be risky. You may not

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want to bore them with a long document upon first encounter. You may need to send them an
introduction email, or small pitch summary that introduces them to what your business is all about
without giving away too much information. In our next conference, I will be showing you how to
develop a pitch tech, that does a good job of making a good first impression to potential investors.
And during the program, you have the opportunity to practice your pitch with me, so you can
improve your performance before approaching potential investors. I have had several people who
email me, telling me that they just got this invitation by a potential investor, who wants them to
come pitch. It’s a good thing, but I always tell them for you to have a solid pitch, it’s not an
overnight endeavor. You have to prepare well in advance. So, because you don’t know when that
email you wrote will get a response, or that investor you have been trying reach will get back to
you, you need to be pitch ready. If you truly want to be pitch ready, then of course this are the
people that I am targeting for the next conference.
1.3.10 The rule to watch out for death traps
The tenth golden rule is to watch out for death traps. This is reality and I want you to understand
that this is going on a whole lot in the business environment where you operate. In fact, the trend
is beginning to grow so much so that, I am beginning to get really worried for some of you whom
might be trying to reach out to potential investors. But the good thing here is that, I will tell you,
what to watch out for, so that you don’t fall in to death traps. There are a lot of people out there
who will try to take advantage of you. If you are trying to raise capital, you are in a vulnerable
situation. And there are a lot of scammers, loan sharks and predators who will try to exploit your
desperation to raise fund for the business. You need to be very careful before you commit yourself
to anything. Before you sign any contract or agreement with a potential investor or lender who has
promise to give you capital, make sure you study that contract very well. Get legal advice if
necessary. Some entrepreneurs have locked themselves in to dangerous contracts that is killing
their businesses. After you have taken that money, it will be harder to make any serious changes.
In worst cases you may lose your business, so, you need to be careful.

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Source: smallstarter.com (2020)
Figure 1.8: Watch out for death traps
If you are taking out a loan, make sure you clearly understand the terms and conditions like interest
rates, the installment payments, what happens if you default the first time, second time and third
time? You need to be very clear on those things, if you are raising capital from an investor, have a
very good look at the term sheet. The term sheet is essentially an agreement or some kind of
contract that binds yourself to the investor. It covers several things about the amount of funding
you will be getting, the rights of the investor, the kind of power they will have and different things
of that nature. You need to be careful that there are not dangerous clauses on that sheet. Getting
good legal advice could save you a life time of regrets.
In our next conference, I will be showing you some of the beautiful areas you need to look at as
you engage in a contractual relationship with an investor or lender. This is an area that many
entrepreneurs don’t even think about because all they are thinking of is the money. Most times the
money may be a trap and by the time you sign the dotted lines it may be difficult for you to pull
yourself out of that mess. So, it is very important, that even though you need the money, it should
not cost your life in the business. This golden rule is very important, always watch out for death
traps.

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1.4: Conclusion
Running a business requires a great deal of capital. Capital can take different forms, from human
and labor capital to economic capital. But when most of us hear the term financial capital, I don’t
know why the first thing that comes to the minds of many people is usually money. While it can
mean different things, it isn't necessarily untrue. Financial capital is represented by assets,
securities, and yes, cash. Having access to cash can mean the difference between companies
expanding or staying behind and being left in the lurch. So far, we have seen how companies can
raise the capital they need to keep them going and to fund their future projects? We have also seen
what options they do have available at their disposal. Businesses can use several methods to raise
capital. The most frequent options available to them is either through debt or equity, where the
cost of debt is usually lower than the cost of equity given debt has recourse. Debt holders usually
charge businesses interest, while equity holders rely on stock appreciation or dividends for a return.
Whatever be the case, capital is utilized for different purposes at different stages in a company. At
inception, a company requires a start-up capital to set up the business, acquire office space,
licenses, permits, employ the required staff and for marketing expenses. This capital is very
necessary but should not constitute a significant portion of the total capital of the business.
Throughout the lifespan of the company, it may require a certain amount of capital as working
capital for the day to day running of the business; this is usually generated by the business itself.
Companies that are looking to expand or improve operations also require Capital, a growth capital.
1.5 Summary
From the golden rules we have discussed this far, it is important entrepreneurs understand that, no
one is more important than another. The first golden rule we have seen is to follow the money.
Recall that, you have to focus on the sources of capital that are giving out money to entrepreneurs.
If they had given out money before, then they are very much likely to give it out again. The second
is don’t ignore the easy money. There are sources of capital around you that you may have been
ignoring. Most of them are informal sources that is people within your social network. People who
already know you, people who like you and probably trust you. A lot of entrepreneurs are not
paying attention to these easy sources of capital. You may not be able to raise a lot but it gets you
going. The third golden rule is to follow up. Your chances of raising capital increases every time
you follow up with a potential investor. Always follow up until you get a yes or a no. If the

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investor’s response is a maybe or come latter, then keep following up until you get a yes or a no.
Again, follow up can be tricky. The fourth golden book is to embrace rejection. Most entrepreneurs
face rejections and run. No, that is not the way out. You need to expect it and not take it personally.
It’s only a game of patience, if you have been rejected, then just keep trying. The more you keep
trying after a rejection, the more your chances are of raising capital. The fifth golden is that you
should be crystal clear about what you want. If you are not clear about what you want, you could
end up with the bad deal. A bad deal is worse than no deal. The sixth golden rule is to know your
numbers. Don’t depend on a template or consultant to prepare you a business plan for you. Even
if you can’t prepare one, you need to understand what is involved in a business plan, because when
that day comes, the investors will be asking you the entrepreneur the questions to answer and not
the consultant and not the template. The seventh golden rule is to identify and address critical risks.
These risks influence the way investors think and make decisions about which businesses to invest
in and which ones to ignore. The eighth golden rule, is to always have a plan “B”. The reality is,
it may take longer to raise capital. And even when it comes, it may not come in bulk. So, you need
to be frugal and careful with the funds you already have because you need to have that endurance
to last. The ninth golden rule is to be pitch ready at all times. You never know when you will run
into a potential investor. He might be at a social event, at a friend’s party, it could be a chance
introduction, whichever way it comes, you need to be able to prepare yourself in advance. The last
golden rule is to watch out for death traps. There are going to be people who will want to take
advantage of you. Make sure you understand what you are getting yourself in to before you sign
any contract or give any part of your business away. So, these are the 10 golden rules of raising
capital, if you follow these rules, you could significantly increase your chances of raising capital
and if you don’t you will like face a lot of frustration and disappointment along the way.
1.6 References
https://blog.ipleaders.in/rules-regulations-prescribed-raising-capital/ Date accessed: March 15,
2020
https://smarttribesinstitute.com/rules-for-raising-capital/ Date accessed: January 25, 2020
https://syndicationattorneys.com/articles/legal-aspects-raising-money-private-investors-rule-
506b/ Date accessed: February 3, 2020

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https://www.bloomberg.com/news/articles/2007-01-22/rules-for-raising-capitalbusinessweek-
business-news-stock-market-and-financial-advice. Date accessed: January 30, 2020
https://www.investopedia.com/ask/answers/032515/what-are-different-ways-corporations-can-
raise-capital.asp. Date accessed: March 28, 2020
https://www.sec.gov/smallbusiness/exemptofferings/rule506b Date accessed: February 3, 2020
https://www.smallstarter.com Date accessed: January 5, 2020
1.7 Review Questions
1. Why should an entrepreneur follow the money? Is it worthwhile following the money?
2. There are generally, three main categories of funding sources, but why do most entrepreneurs
tend to focus on the hardest source?
3. How will you advice an entrepreneur to develop a follow up attitude.
4. When you are trying to raise funding, rejection is a big part of the game. But are many
entrepreneurs afraid of rejection.
5. Have you ever been rejected in a business pitch, if yes, what was your reaction and how did you
overcome it?
6. With respect to raising funds for their business, how can entrepreneurs be crystal about what
they want to an investor?
7. Knowing your number is a fundamental precept of business. Discuss
8. What if the time taken to raise capital for your business is longer than expected, what if the
amount expected never came in bulk and what if the investor rejected your business plan. What
will you do and how as an entrepreneur?
1.8 Task
❖ Read the notes on unit 1.3.8 (The rule to have a plan B) and make a detailed concept note
for up to 5 pages.

18. 18
1.9 Reading Assignment/Suggested Readings
❖ Read this article titled “The Legal Aspects of Raising Money from Private
Investors-Rule 506(b)” (Nov 7, 2016), from the internet, accessed from
https://syndicationattorneys.com/articles/legal-aspects-raising-money-private-investors-rule-
506b/April 16, 2019
1.10 Reading Assignment Supplementary Source
❖ YouTube Video lecture: How to Raise Capital: Startup Funding Explained.
❖ Video Highlights: - The video explains how to raise funding for your business as an
entrepreneur!
❖ Note: To access the video, copy and paste this Playlist
❖ URL: https://youtu.be/1uh8qzGpNKk?t=16
❖ Source: https://www.youtube.com/watch?v=1uh8qzGpNKk. Retrieved 28 April 2020.
1.11 Written Assignment
What if the time taken to raise capital for your business is longer than expected, what if the amount
expected never came in bulk and what if the investor rejected your business plan? What will you
do and how as an entrepreneur?
1.12 Discussion Assignment
Discuss in groups, the significance of knowing your numbers as an entrepreneur before presenting
your pitch or business plan to an investor