Where do you start fundraising?

Finding investors for you next world changing idea is not easy. Yes we have all heard the story of the guy doing a fundraising round in Silicon Valley and getting 50 Million dollars in 1 session That story leaves out the hard work that was put in the fundraising project in the years beforehand.

We never hear the stories of the businesses which failed to raise any money - because you guessed it right: They failed. Nobody likes a failing story.

So where do you start?

Firstly: Put your own neck on the line. Don't expect other people to invest in your business if you are not willing to put everything in it.

I don't like this. I like having a safety net. But the truth is that if you are not willing to put everything in you clearly aren't too sure this is going to work.

Secondly: 3 F's - Family, friends and fools

You should go and ask your family and friends for money. Most of your friends and family will love your startup idea. Until you ask them for money. You will clearly see if they still think it's such a great idea.

Beware however with loaning money from friends and family. Make sure if your business fails you find a way to pay the money back. There is nothing worse than going to the next Christmas meal and feel nothing but dislike.

These investments will probably be smallish, but they hopefully get you going.

Thirdly: Angels

Angels are people who have extra cash and are looking to invest in businesses. Angels are investing their own money so they can be very hands on. Often angels bring more than just money to the table - contact, experience... Before you go and approach a angel group know what they are about. Don't go with a oil drilling project to an angel group which specialize in green energy investments. You will look like a fool.

Angels might invest substantial amount. Anything from 250000$ to 1.5mil. $.

Fourthly: Venture capital

These guys will probably only come in at a later stage and come in with large amounts of money. They use other people's money.

Funding can be anything from 1mil $ to 10's of Millions.

My one word of advice: Remember to be wise in bringing other people's money on board. Most people want something back. Make sure you get a good deal and you give your investors a good deal.

Also follow you gut.

Good luck in growing your baby.

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What is a fair salary?

I started two businesses in the past seven months. I employ seven people. These people depend on my businesses to feed their families. In African terms this means that 70 people depend approximately on my businesses. A big responsibility.

Deciding on a salary has been a real challenge. My social side wants to pay as much as possible, but my entrepreneurial side wants to pay as lot less to keep costs down.

Is paying the minimum wage enough? Legally it is, but is paying the minimum wage right?

I pay my staff R200 per day which is about 60% over the minimum wage. I want to pay them more, but the cash flow of the business doesn't allow this atm (or maybe these are just excuses?!?!). I make sure my staff can do one day a week overtime so they can bring their total earnings to just over R5000 a month.

A good friend of mine posted a link to http://living-wage.co.za/ - twitter: @code4sa

These guys build a basic calculator to work out how much we should pay our domestic workers in South Africa.

I followed their guideline by giving my staff R5000 per month in possible earnings. I don't know if this enough.

I find this an interesting topic and something to think about for everyone who employs somebody. I don't have the answers just more questions.

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Square One

July first is less than a week away. Halfway 2015

Hard to believe.

My main New Year's resolution was to look better after myself. It hasn't really worked out the way I intended it to go.

I started anti-depressants just before the turn of the New Year. I needed to take the edge a bit of my border case living. I needed to find some peace and space in my head. I wanted to create a place where I could start dealing with some of the challenges in my life rather than fight the symptoms. 

It worked for a couple of months. Afterwards, my weeks seemed to become very monotonous. I don't function in the grey. I need colour.

I need passion in my life.

In April I slowly weaned myself off the antidepressants. One quarter a week.

It worked. I coped well for a couple of weeks. 

I thought. 

Often the people around us see our depression quicker than we do. While I was on Meds I didn't want to make the changes I need to make to find peace between my emotions, thinking and living. I thought people would not believe me. The problem with not making the necessary changes is that I ended up living with all the same ingredients still in my bowl of life.

The result: I turned in another depressive cupcake.

I haven't been kind to myself. I still believe I need to fight my own fights all the time. I still see antidepressants as something for the weak and needy. I feel ashamed that I am starting meds again.

I am running two startups in a notoriously difficult country to get anything done. I live in the midst of rocky and shaky relationships. I live in a country which isn't home. I have no family near...

I need to give myself a break. Do you need to give yourself a break?

Half way in the year I am back at square one. Back in a place I don't want to be.

Try to enjoy the journey and worry less about the outcome.

What's next? Changes - slowly and non impulsive.

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'Failing'

Last week I wrote a blog about trying to live for a month on the South African minimum wage.

I failed. I lasted for about 24 hours.

I thought this would not be too hard.

I have completed some challenges:

I did abstain from chocolate for a whole year during 2014.

I finished my degree correspondence.

I lost 30kg's in 6 months.

I spend nights sleeping on the streets with the homeless.

Polony...

I did not realize how hard it would be to cut all pleasure out of eating. With living on the minimum wage there is very little space for the little extra's - in food and in life.

Living on the minimum wage is hard. Cheap food sucks. I started my budget living with a typical workers meal: White bread and polony. I nearly vomited. I would rather eat care tyres than ever have to eat cheap polony again. It was horrible!!!

I might have another attempt at this challenge, but I will need to change my living circumstances.

Two lessons for me - maybe for you: 
1. It's okay to fail.

2. Do not eat polony!!! Ever!!!

No risks, no rewards. 

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Living the minimum wage life

South Africa, my country is second on the gap between rich and poor list in the world.

I employ six staff. I pay them salaries. So I looked into minimum salaries as proscribed in the South African law.

They are low, very low.

You might be pleased to know that I pay my staff substantially more than the minimum wage, but I am sure there are many people who just earn the minimum.

I like a challenge...

The Challenge: Live for a month on the minimum wage which is R2600 - $216 in the agricultural sector which is where my main job is.

Some parameters:

- I don't have to pay rent so I will give my rental money - which I worked out by taking the average rent my staff pay - to a charity

- I have a company car which I need for work. I cannot run my company without transport. I will pay my bus fee to and from work to charity

- I will do this experiment all by myself. My kids will not be affected by this. School fees, food and other things for them will be provided as normal.

- I will keep a record of all my expenses so I can track all my spending.

Why

- Can I do it? We all need challenges in life. (Tweet This)

- I want to know how the other side shop, live, think about money...

The result

I don't know.

I don't expect to really understand poverty, but I will hopefully get an insight.

I trust that I will learn some things.

What's in it for you?

Some updates from the other side of the beautiful Port Elizabeth in South Africa. Most likely some stories about being hungry and annoyed at being poor. Maybe some deep, but probably more shallow thoughts on life and it's 'meaning'.

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