Aaron Wilson and Kelvin Mensah are the author’s of the book “How To Get Funding for Your Startup.” In a recent interview we received some very much valuable information that can aid in helping our newly birthed entrepreneurs. With the rise in unemployment due to Covid 19, many have sought out new ways of creating income. So exactly how do you get started with a business when funds are pretty low? Well below Aaron Wilson shares with us some very helpful tips based off of his most recent book.
Share with us information about your book and what led you to write it?
“How To Get Funding For Your Startup” is a tool that has been strategically positioned to bridge the information gap between socioeconomic classes. It’s quite evident that there is an information gap between members of the middle class and members of the lower middle class or inhabitants of under-served communities. We wanted to allow everyone to have access to the same information that has enabled venture capitalists to build & scale successful companies quickly. Writing this book was one step in the right direction for resource equality.
What are a few tips on gaining the funds needed to help with your startup?
It’s important to get an in depth understanding of who is in your network. Create a list of individuals who you know (both friends & family), then categorize them based on occupation. After you have done this, you can now carve out an outreach approach to share your idea with them via a series of phone calls that you will setup over the course of 2 weeks. Keep in mind, you want to approach them in a subtle fashion — don’t ask them for money. Ask them if they know anyone who is interested in getting into the investment space. That person will then be more inclined to think, “Why are you not asking me? I’m interested in investing money.” After reaching out to family & friends, conduct research on prospective institutional & angel investors and identify a list of 30 prospective investors whose investment criteria/investment mandate & industry expertise aligns with your product/service. Research the telephone numbers & email addresses of the managing directors, partners, and senior associates at the firm, then reach out to them accordingly.
Are there any platforms that you highly recommend using to raise money?
Quite frankly, platforms have become a bit ineffective. Capital raises should be organic to start then strategic after conducting a “Friends & Family” round. I don’t recommend platforms as you don’t have as much control over the capital raising process. Furthermore, investors want to invest in people, not ideas or a product. Human interaction is going to be the best way to garner someone’s attention when making such a large commitment. Sending an email or making a phone call will be significantly more effective than being a result as a part of a filtered search on a funding platform or website.
What has helped you stay on top in business over the years?
An insatiable desire to win. Business is like a sport. You have to practice daily, build a good team, and be ready for exhibitions. If you don’t find yourself reading business-related articles or acting as a human “think tank” then maybe business is not for you. I find myself always in “mode” as my friends & family would say. While one must maintain a balance in life, generating new ideas, thinking about growth strategies, and executing transactions all excite me and bring that balance.
So many since the Covid 19 pandemic are seeking to venture off into entrepreneurship, What advice do you have for them?
Entrepreneurship is a beautiful beast. A beautiful beast that is not to be taken for granted. Entrepreneurs are being born everyday thanks to the prominence of social media. However, the market is supersaturated with self-proclaimed experts who add no value to anyone. The aforementioned dynamic is what (contrary to popular belief) makes it hard to be a successful entrepreneur in these current times because everyone is selling opportunity and a dream, while very few offer substance. I would advise anyone who is interested in pursuing an entrepreneurial venture to be self-aware and ask yourself, “Do I really know enough about what I’m selling in order to make an impact?” and “Would I be content waking up everyday in this business during times when I’m not generating revenue?”. There are psychological effects that impact one’s mental health due to the stresses of entrepreneurship so if you are not completely sure that this is the path you want to take, then proceed with caution.
What are some basic things you need to get started with your own business?
This is an interesting question because most people would respond, “capital, money, resources, etc.”. However, there is always one key thing that many people do not have when they have lofty aspirations of starting a business — a plan. The key is to flesh our your idea and conduct some sort of feasibility analysis to determine if your idea “has legs”. Figure out if this is something that you are passionate about and something that can actually be executed. People pitch ideas to me all the time but then I ask myself, “Is this a good conversation or a good business idea?”. There are so many ideas that sound great when discussing them with friends or really determined peers. Nevertheless, when the idea is put through light due diligence, you can easily realize that developing a proof of concept will be costly and the idea would lead a company to perpetually be in the red and never turn a profit. First things first, flesh out your idea, develop a business model, and conduct research on the competitive landscape of the industry you’re in. If you make it this far, then I suggest reaching out to a professional or doing some reading of your own to determine if this is an idea you would truly like to pursue.
Do you suggest quitting your job and jumping out there to start a business?
Life is about making sound decisions. The steps that one takes in his or her decision-making process will always vary. Nevertheless, the ability to leverage your foresight and understand how decisions impact you both short & long-term are differentiating factors between people. It’s never advised to just “jump into starting a business”. You have to have a plan of action and of course incorporate some buffers to mitigate your risk. Ultimately, you have to believe in yourself and take calculated risks as you cannot let your dreams be overshadowed by your fears.
What other projects are you currently working on?
There are an array of projects that I’m currently working on right now. I’m working with a few like-minded subject matter experts as we are in the beginning stages of forming a hyper-growth Venture Capital firm and launching a $25MM capital raise. This is something that I have always wanted to do and I’m excited to be working with such a talented group of people. My 30-Day CEO course is on the way and will be released Q4 of this year. Additionally, my business partner, Kelvin “PJ Kev” Mensah and I are exploring a few options within the tv & film industry.
Discover more information about ways to fund your business and connect with Author Aaron Wilson by visiting http://www.wilsontalentsolutions.com/
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