Okay! Get a cup of jo, because this is a good one!
If we’re going to REALLY get down-and-dirty about building and funding a 7 Figure Business, let’s consider equity financing first. Each round of financing should be large enough to last you 12 months or so. Most companies do 3-5 financing rounds prior to exit (IPO or acquisition). The first financing round should be a smaller one – a few hundred thousand dollars usually from friends, family, or angel investors. The goal is to get a product in beta test form and prove your idea.
Next is a more formal financing round, often multi-millions, with institutional investors (such as venture capitalists) coming into the picture. Then comes round three, sometimes with corporate investors and more institutional investors. At the third round, the exit or liquidity event should be planned.
The other source is similar, except your financiers are angel investors instead of institutions. You still need to have the right corporate structure and you’ll have the ups and downs that come with someone else owning a sizable chunk of your company. Remember–the goal of any investor is to make money as soon as they can and at the highest value they can. This changes the course of a company’s business acceleration — a LOT!
Regardless of which equity-based approach you take, you’re selling a piece of your company, so you’ll be losing some control. You’ll now have partners who can vote on company decisions you want to make, and sometimes your plans will be shot down. That said, this may be a better approach than dangling alone on the financial hook. With equity, the company’s assets are at stake; with a loan, your personal ones are. Either way, though, your business acceleration and 7 figure success almost demand that financing is part of the deal.
This week, jot down 5 people who you could target as investors in your company. Think about how you can approach them, and how you can sell your business idea. If you’re ready to get your pitch in order, then you’re probably ready to work with me. How? Well, I mentor one-on-one and in small groups, through my Business Acceleration Mastermind program, and also with my Business Acceleration Intensive weekends. I also mentor at live events, like my 7 Figure Business Summit. THIS event is happening in only FOUR WEEKS. 4/30-5/2. So hurry!
IF you cannot attend my Summit for any reason, then by all means, grab my Results Now Webinar and get started – but I think you should ALL be at that Summit and give me a chance to see you and hear the extraordinary life that YOU want to build.
To your amazing and IMMEDIATE 7 Figure Success,
Christine Comaford, 7 Figure Business Builder
CEO of Mighty Ventures, Inc.
NY Times Best Selling Author of Rules for Renegades
Christine Comaford believes every entrepreneur has at least one multi-million dollar business inside of them. Her 7 Figure Business Formula has created over 153 multi-million dollar businesses. Learn the 6 proven steps to YOUR 7 Figure Business here: http://bit.ly/ComafordWebinar