Do you want to get funding for YOUR business?
As an entrepreneur, it’s your job to motivate teammates, crank out good products, and sell, sell, sell!
It’s hard to do that if you don’t have any kind of capital to work with. In fact, it’s nearly impossible.
Almost every major startup had multiple rounds of funding before it became a fully established business.
These funding rounds are an integral part of the growth of the startup. Without them, the company would die! This holds true for massive tech startups and small businesses. They just grow in different ways.
A small business owner can re-invest profits back into the business to fuel it’s growth.
If you’re just starting out though, and you want to fund the mass production of a physical product, it’s going to be difficult to do that.
Today, I put together a training video for you that will show you how to solve this problem.
I’ll go into the different ways to get funding for a business.
Just watch the video below, and you’ll get a clear understanding of how to bring new sources of capital into your startup company.
I want to ask you something… what are you going to use the funding for?
All too often, entrepreneurs will try to raise funds WITHOUT a plan for how to spend the money.
It’s actually a big problem. Of course, this is a GOOD problem to have, but make no mistake, it is a problem.
Spending investment money profitably is extremely difficult. All too often, a startup will burn through their seed money without anything to show for it. Then, they have to go and try to raise even more capital.
Smart startups will set milestones. They’ll use the investment for specific purposes, like to complete the prototype, fund the mass production, or to pour into social media advertisements.
Even then, spending investment money is risky. You’re making a bet that your decision will pay off in the future. You could end up with lots of unsold inventory or a massive marketing bill and no sales.
Spend Your Investment Capital Wisely…
Once you do successfully raise money using one of the techniques that I covered here, then you’re going to need to figure out how to spend this capital.
Here is a list of things NOT to spend your money on:
- Fancy office furniture
- Expensive office space
- Lavish company events
- Anything that DOESN’T MATTER to the customer.
Here is a list of things that you SHOULD consider spending your money on:
- Mentors, coaches, and advisors
- Education and employee training
- Marketing and advertising
- Conducting “tests” to gauge demand
All of these items are going to vary from company to company. Some founders don’t know anything about marketing, so it wouldn’t be wise to just hand over a bunch of cash to a marketing firm.
Other founders have yet to fully discover the product, so they’ll be spending more time trying to get product-market fit before they engage in advertising.
The most important thing is to think of the investment capital as the same way that you’d think of a stock. HOW and WHEN will your company experience the ROI on the money spent?
For example… I recently purchased an amazing book on online marketing. This book was $10. I then applied ONE of the techniques the book talked about and instantly made $100.
That’s a good freakin’ investment!
Try to have an ROI-focused mindset. If an investment gives you an epic return within a year, it’s probably worth making.
It All Comes Down to SALES
No I’m not talking about the actual sales of your business. I’m talking about SELLING your business to investors.
Sales is simply a code word for persuasion. How can you persuade someone else that if they put $100 into your business that it will turn into $1,000 in the next few years.
You need to paint a picture in their mind so that see the vision for the company as clearly as you do. You also need to persuade them that you have the right team, market, and resources to pull it off.
Not every type of funding requires this. Almost every type though will usually require that you shoulder some kind of risk. Let’s be honest, no one is going to give you money for free.
Even with Kickstarter and Indiegogo campaigns, there is an expectation when someone decides to back your project.
Where To Go From Here…
First of all, take a second to subscribe to my YouTube channel and turn notifications on! This way, you’ll be sure to get emails when I come out with new videos.
Next, you can dive into some of my other tips on startup funding. My blog is meant to serve as a bedrock of information that you can use to not only get funding for your company, but also build the type of life that you want.
Just think how AMAZING it will be to be your own boss, lead a team of employees, and contribute meaningful products to the world.
I’m excited… are you?
