How do you find funding for your business? Darts? Magic 8 Ball? I don’t think so. Truth is, if you don’t develop a solid capital acquisition strategy, you’re likely to get the wrong money at the wrong time from the wrong financiers on the wrong terms.
Let’s say you’ve got a terrific business plan and you’ve honed your twenty-minute financing pitch. You’ve built a great team, got all your ducks in a row, and now all you need is cash. The first question you have to answer is “How much do you need?” And there are 2 simple rules to follow here:
Rule #1: Take more than you need.
Rule #2: Only if it’s cheap.
Always remember that cash is cheap, equity is not. If you sell a percentage of your company, it’s very, very difficult (and very, very expensive) to get it back. This is why it’s a great idea to take multiple financing rounds, especially in the startup phase when your company’s value is low.
I promise to write more on this tomorrow. For today, that’s it. I have to go and help one of my mentoring peeps through their own funding pitch. (That client actually started out with me through my Results Now Webinar – a GREAT program for entrepreneurs who are too busy to get to my Summit in April.)
You can find details at http://www.ResultsNowWebinar.com – it’s a GREAT opportunity to MOVE your biz (and get my personal mentoring).
To your success and your funding success and business acceleration EVERY day!