Your Business Doesn’t Need Funding First — It Needs Profitable Clients
Raizcorp CEO Allon Raiz believes that many entrepreneurs are chasing funding too early, without fully understanding the fundamentals of building a profitable business.
Reflecting on the early days of Raizcorp, Raiz explained that when he started the company 26 years ago, he had little clarity about what the business would eventually become. The vision was simple: create a shared environment where small businesses could access support services such as reception facilities, bookkeeping assistance, and boardrooms.
However, turning that vision into a sustainable business proved far more difficult than expected.
According to Raiz, it took five years and two months before Raizcorp generated its first profit. During that challenging period, he actively searched for funding but struggled to convince investors and funders because he could not clearly explain the business model, target market, or revenue strategy.
Ironically, Raiz said the first time he heard the term “business incubator” was from a potential funder who attempted to define what his company actually did.
The breakthrough came through advice from a mentor who shifted his perspective entirely. Instead of focusing on securing funding, the mentor encouraged him to focus on winning profitable clients.
Raiz explained that the advice was simple but powerful: secure one profitable client, then a second, then a third, and continue building from there.
But understanding what makes a client truly profitable became the real lesson.
He noted that attracting customers is relatively easy if profitability is ignored. The real challenge lies in creating the right value for clients while ensuring the business prices its products or services correctly.
Raiz emphasised that entrepreneurs need a deep understanding of costing, pricing, and market demand before they can confidently seek investment. Without this foundation, many businesses fail to convince funders because they cannot demonstrate a sustainable path to profitability.
For Raiz, profitable clients became more than just revenue sources — they became proof that the business model worked.
He believes entrepreneurs who understand how to create value, price effectively, and identify genuine market demand are far better positioned to access growth funding later on.
The Raizcorp founder added that many startups make the mistake of looking for funding before validating their business properly. In his experience, investors are far more likely to back businesses that already demonstrate profitability and market traction.
More than two decades after launching Raizcorp, Raiz’s message remains highly relevant for entrepreneurs navigating today’s competitive business environment: funding should accelerate a working business model, not rescue an unproven one.
