IMPURTANT: READ NUW!

The Nanifesto Foi

Raising Capital
"22 Ways To Raise Noney Without
uoing To The Bank 0i uoveinment"

8||| G|bson and S|ya Mapoko

Need more ideas?
Visit www.siyamapoko.co.za or email siya@siyamapoko.com
Introduction

This document contains 22 ideas that can help you raise capital or get
funding from banks and funding agencies. Most of the strategies in
this document were conceptualised by Mr Bill Gibson. In 2007 when I
was raising capital for my first business he sent me a document with
17 ways to raise capital. This document was a major boost for my
business because I applied the majority of the ideas he gave me. My
team and I became so creative such that we ended up coming up with
another 10 or so of our own strategies. Thanks to Bill. In this
document Ill share all the ideas Bill gave me and a few of my own
that Ive used and still use to build my business.
Bill has been doing business here in South Africa since 1994. He has
been an Entrepreneur for 40 years of the 66 years he has been on
this planet. And he has borrowed and raised millions of rands for
himself and for ventures of other business people. Believe it or not
most of the time the money was raised initially without the bank or the
government.
Bill wrote the foreword for my book Conversations with JSE AltX
entrepreneurs, and here is a short except:
18 months ago (October 2006) while touring the country speaking to small business
owners sponsored by Nedbank Small Business Services I was approached by a
young, sharp entrepreneur. He immediately purchased my Audio CD and Manual
Program, Boosting Sales and Profits with Focus Selling. Within weeks he followed
up with feedback to me on how he was implementing the information. A few weeks
later he met me on a trip to Cape Town at 11:00pm. On another trip he came to see
me at 7:00am. Before I knew it I was one of the main business mentors to this
young, dynamic, sincere business owner Siyabonga Mapoko.

During our many telephonic conversations and face-to-face meetings I shared with
Siya 17 Different Ways to Raise Money without going to the Bank or the
Government. He has used virtually everyone of them. With tenacity, innovation,
creativity, honesty, integrity and 80 to 90 hours per week of work, Siya has
successfully launched iCaptive here in South Africa, while still writing this
phenomenal book to help other business owners and entrepreneurs make their
dreams come true.


Need more ideas?
Visit www.siyamapoko.co.za or email siya@siyamapoko.com
It is a bonus if the Bank or a Government Funder loans or
grants you money for your business. As potential business owners
and entrepreneurs we need to explore all of the avenues for raising
capital and funding our growth and not totally rely on the Banks or
Government if South Africa is truly going to be an entrepreneurial
driven business society.
Im going to quickly share 21 Proven Ways to Raise Money And
Create Equity So Traditional Lenders Will Look Favourably On Your
Financial Request. This may open up avenues you havent thought of
before.
1. The Rule Of 10: Before embarking on a capital raising
campaign, you must do a simple exercise that only requires a
pen and a blank note pad. Write numbers 1 to 11. Next to
number 11 write Approach Banks and Funding Institutions.
From number 1 to number 10 think of 10 things you can do or 10
avenues you can explore to either reduce your capital
requirements or to raise a portion of the required capital before
you approach the bank. If or when you finally approach the
bank, you can submit a document outlining what you did to raise
the money you raised. That demonstrates your resourcefulness
and your abilities as an entrepreneur. I have a 1 hour audio
recording where I interview 2 Business Bank Managers where
they reveal the details of what the banks look for when they
evaluate your application. I offer this audio recording for FREE
as a special Bonus when you buy download my book
Conversations with JSE AltX entrepreneurs online (ebook). Get
full details at the end of this document. The Ideas below should
help you with some powerful strategies.
2. Someone Invest In A Specific Product or Project. Rather
than give away equity in your business have an investor, friend,
associate or business invest in a specific product or service you
wish to launch and they own a percentage of the product /
service and gain revenue from that. A South African Corporation
put up the initial capital for Bill to build his 21 Module Program,
The Complete Sales Action System. They jointly owned the
product with Bill and got about 4 times their investment back
before he bought them out. They financed the project.
Need more ideas?
Visit www.siyamapoko.co.za or email siya@siyamapoko.com
3. Build Your Concept / Product for a Client At A Reduced
Price And Retain The Ownership. Bills Managing Complex
Business Relationships System was initially built for a multi-
national bank at a reduced rate. This covered his initial
investment of time, energy, intellectual capital and money. The
terms were that he would hold all rights and ownership and
make the system generic and have the right to market it
worldwide with no share of revenue to them because they saved
on the initial price.
4. Initial Client Shares In Revenue of new Product, Process,
System. Build your product or process for a client and have
them contribute to that cost but with the understanding they
share in a percentage of revenue when you sell it elsewhere.
That funds your venture and you both win. Be sure to put a
ceiling on how much they can earn.
5. Payment Upfront Discount. Short on capital. Offer a good
discount for 50 to 100% of a project being paid in advance. This
can take you through a cash flow crunch. Be sure the discount is
attractive. They wont do it for a 2% discount. Remember,
Financial Directors and Procurement Managers also want to
look good in the eyes of the CEO and if they can show how they
earned a large discount for the company they often will do it.
6. Short Term Strategic Partner Who Has The Resources That
Off-sets The Investment Needed. You may want to build a
CRM Software Solution and you dont have the expertise or
money to do it. Engage a short-term Strategic Partner who has
the expertise to build the program. The partner receives revenue
up to a specific ceiling amount for the services. You could in
addition engage another company who has the Marketing
expertise and team who could sell or distribute the new software
program. I know several entrepreneurs who have done this in
South Africa.
7. Someone Signs For You With A Major Supplier. Founders of
a successful and popular entrepreneurship magazine in South
Africa printed their first edition of the magazine by having a
friend volunteer to personally sign at a large printing house to
Need more ideas?
Visit www.siyamapoko.co.za or email siya@siyamapoko.com
guarantee the printer he would get paid. That was all they
needed to get the first edition off the ground.
8. Suppliers Earns Extra On The Project. You need a specific
supplier or manufacturer or consultant to produce something for
you and you dont have the capital to pay. You agree to pay
them, for example, 30% more than they normally charge if they
will carry you for 6 months. You have just raised the necessary
capital.
9. For 6 Months 90 to 120 Days Terms With Your Suppliers.
In advance you convince the majority of your suppliers to allow
you 90 to 120 days to pay your account. If on an average you
are paying this group of suppliers R50 000 per month, youve
actually picked up R150 000 that can be used as a cash
injection that could take you through a projected tight period.
You must commit to be loyal to them for this type of cooperation.
10. Employees And Key People Take A Minimal Amount For 6
Months For An Incentive To Come Later Or For Equity.
Bill was once helping an entrepreneur open a Wax Museum
Attraction in Vancouver, Canada. The entrepreneur ran out of
money 3 months before opening and couldnt afford the
contractor who was renovating the museum and building the
props. At the time Bill lived in a house with a group of Aussies
and Kiwis who worked in the Canadian North during summer
months in Construction and Building. It was the winter months
and they were not working. 6 of them agreed to finish the
museum construction for a big bonus within the first 3 months of
cash flow. They got paid handsomely and the Wax Museum got
opened.
11. Corporate Citizenship / Social Responsibility, Sponsorship.
One woman entrepreneur in South Africa was fed up with the
number of paraplegic people in the community because of
accidents underground in the local mines. She went
underground and researched the problem. She decided to start
a business to provide protective padding for the elbows and
knees of the workers. She also decided to manufacture rain gear
to keep them dry underground. Anglo Ashanti gave her a grant
to get started. She now has over 100 people working for her and
Need more ideas?
Visit www.siyamapoko.co.za or email siya@siyamapoko.com
the majority are black and many are paraplegic. She raised the
initial capital through corporate sponsorship.

12. Special Terms For 2 Years For A Client. Assisting in the
beginning. One magazine in South Africa launched the
magazine by giving several major advertisers a specific rate for
2 years as a thank-you for signing a 2 year contract. These
contracts acted as proof of the viability of the business and in
turn that convinced the investors to move forward with the
capital input.
13. Several Small Investors No One At A Major Risk. You
need R200 000 to launch your business. Your idea is viable and
you have the proven ability to make it work but you dont have
capital to contribute or the collateral to borrow it from the bank.
The banks will want to see your financial contribution and know
what security you will offer for a loan. You cant provide either.
Go to 20 people who know and trust you and borrow R10 000
from each of them. (No one is at a major risk.) Give them a good
return on their investment. Be sure to under promise and over
deliver on the payments. Give yourself ample time to pay them
back. Liberty Life was funded in this way when it was founded in
1957. Mr Ackerman also used this method to acquire and grow
Pick n Pay.
14. Part Of Another Successful Company For The First Two
Years. Start your business as part of another company that is
successful. That company owns a percentage of your company.
They assist with financial controls, offices, equipment, branding,
expertise, suppliers, etc. This indirectly could raise several
hundred thousand rand to help launch your business. Make sure
the agreement is clear and you have a buy-out option. I (Siya)
did this in 2008 and was part of a big Outdoor Media company.
That helped my start up company for months.
15. No Rent, No Lease Payments For The First 6 Months. Right
now there is lots of commercial property for rent. If you see a
building that has had a For Let sign on it for a long time there is
a good chance you could negotiate the first 6 months as free
Need more ideas?
Visit www.siyamapoko.co.za or email siya@siyamapoko.com
rent. 6 Months of the free rent at R10 000 per month is R60 000.
Now do that on your computers, your photo copier and another
few items youve just raised over R100 000 cash to help you get
started. You could even agree to pay the money back by
amortising it in the next 2 years payments that start in 6 months.
I used this strategy with my former landlord and had a 3 year
lease agreement worth over R350 000 turned into his
investment to my company.
16. Stokvel. More than 9 000 stokvels, burial societies and savings
clubs have spread across South Africa in the last 50 years. They
collectively account for R12 Billion in annual savings.
Dennis Dibakwane, Director of the Stokvel Tourism Company is
providing the Stokvel and Burial Savings Market in South Africa
the opportunity to buy into existing tourism assets that are well
managed and profitable with cash flow. Money can be raised
through Stokvels. Explore the possibilities with Stokvels in
raising capital.
17. Borrow Against The Equity In Your Bond. Make sure you
have a rock solid business plan that you are positive you can
implement before you do this. In essence by borrowing against
the equity in your bond you are not borrowing from the bank
you are borrowing from yourself. You are borrowing against your
equity. If you dont pay the payments then they have the right to
force you to sell your home or take the home from you to get
their money back. Thats the downside.
18. Cash In Your Equity In Long Term Insurance. You may have
been paying on several insurance policies or annuities for
several years. You could have tens of thousands of rands in
equity that you can borrow against. That is another way of
raising cash.
19. Borrow From Relatives And Friends. This is a common
approach because these people often loan the money based on
their confidence in you and your idea. The word of caution here
is that if you dont keep your commitments you could lose a best
friend or relative.
Need more ideas?
Visit www.siyamapoko.co.za or email siya@siyamapoko.com
20. Trade Equity For Expertise / Services. If your accountant,
lawyer, architect, builder, distributor and personal assistant
takes equity in your business in exchange for not charging you
for their services you in actuality have raised capital. A word of
caution is not to give too much equity away for services in the
beginning. Later on you may need that equity for other valuable
contributors and to raise capital.
21. Partner With Expo/ Trade Show/ Event Organisers And Offer
Your Services To The Event. In 2007 there was a small
business Expo in Cape Town. We approached the organisers
and offered to install portable plasma screens at the venue to
broadcast messages about the event and advertise the
exhibitors and sponsors to all the visitors. In exchange we
requested a booth (worth R15 000) and a list of all the exhibitors
so we can sell them advertising. We contacted all the exhibitors
and sold them advertising; we collected all the money and then
we hired the equipment we needed (since we didnt have the
equipment of our own dont laugh). From that event we got to
promote our business fro free and we walked away with close to
R100 000 in profit.
22. List Your Company In The Stock Exchange. Most medium
sized businesses that generate revenues of between R2million
and R5million a year can start thinking about listing on the Stock
Exchange to raise capital in the public market. You can look at
the JSE AltX or look oversees especially the Frankfurt Stock
Exchange (FSE), because it is easier to list at, it is quicker and
has a bigger market of investors. Contact me if you need more
details on either of the 2 exchanges. My email is
siya@siyamapoko.com

As a final note Id like to point something out you might not have
thought of when reading the article.
If you went to a traditional lender or investor to borrow R700 000
without ample security they most likely would turn you down.
What if you showed the traditional lender or investor the following?
Need more ideas?
Visit www.siyamapoko.co.za or email siya@siyamapoko.com
You raised R60 000 by negotiating 6 months free rent.
You raised R150 000 by discounting the price on the building of
the program to a major client. Now you dont need R150 000 for
that purpose.
You cashed in R25 000 equity of a Life Insurance Policy.
An individual invested R50 000 in the development of a product
that they will earn from
Three major suppliers are giving you 90 days to pay which
represents R90 000 in capital you would of needed in the first 4
months.
Partners and Key Employees have reduced their total monthly pay
by R30 000 per month for the first 6 months saving R180 000.
You then explain to them that you need R700 000 for the first 6
months but youve injected R555 000 by doing the above. All you
need now is R145 000 to launch the business with its new products.
I believe someone would loan you the money because of the
initiatives you implemented that in essence were a cash injection of
R555 000 in real terms.
Folks, this is thinking like an entrepreneur. Good luck and I hope you
enjoyed thinking outside of the box.

To get my downloadable book (Conversations with JSE AltX
entrepreneurs) you can email me on siya@siyamapoko.com its
only R99 (you get over R400 worth of FREE Bonuses).
Siya Mapoko is the author of Conversations with JSE AltX
entrepreneurs; a highly-acclaimed speaker; seminar leader; scientific
and business researcher; business development coach and an
extraordinary entrepreneur. Siya spent most of the last 10 years doing
scientific and business research in a career that has cut across
Need more ideas?
Visit www.siyamapoko.co.za or email siya@siyamapoko.com
various fields such as Chemistry, Biochemistry, MRI drug research
(contrast agents), Investment Analysis, Equity Trading, and
Entrepreneurship. For over 4 years Siya has been having
conversations with some of the most remarkable self-made millionaire
and billionaire entrepreneurs, and top executives, seeking to
understand the psychological make-up and deep-rooted principles
and beliefs that set these individuals apart from the majority of
humanity in terms of getting results. For enquiries or to hire Siya as a
speaker or as a Business Coach email siya@siyamapoko.com or call
him on 072 644 5156.

Bill Gibson is Chairperson of Knowledge Brokers International S.A.
(Pty) Ltd. He is the author of several Sales, Marketing and
Entrepreneur Development Systems. To hire Bill Gibson as a speaker
or to gain more information about his seminars and products and
systems phone 011-784-1720 or contact: bill@kbitraining.com.