How do You Get Funds to Start with?
Posted by Robert Norton on
Raising money is very difficult and only possible for companies that can grow large and provide a nice return to investors that warrants the risk. This is for “Equity” or stock sales. Debt can be used with home equity loans, credit cards, friends and family though if you are just starting and have no product or team.
I recommend you do not start a company without at least 6 months personal expenses in the bank. Most of your input to create value (so shares can be sold for something over $0.00) will be from sweat equity. This “bootstrapping” creates value and shows investors you have the skills and a plan.
For a “real startup” with a product that must be created plan on a year to develop a plan, do market research, competitive intelligence, design a product, validate it by showing to prospects (before you build) and then building the MVP. If you do not know what an MVP is, you need to read The Lean Startup first. Service companies require less capital up front because you can start billing sooner and not invest in product development. However, they are easy to copy and so will have more trouble attracting capital in general.
My video webinar course below is for companies that can grow to $10M+ in sales over years, and talks about 30 other sources of capital, mostly equity. With equity, you are giving up some ownership and control, and also become responsible to stockholders – no more personal expenses on the books, liabilities to shareholders for not doing your best for them, etc. Serious stuff that SBF of FTX will go to jail for now. And Trump is being criminally charged for, while his company already was convicted. No to be taken lightly.
Bob Norton is a long-time Serial Entrepreneur and CEO with four exits that returned over $1 billion to investors. He has trained, coached and advised over 1,000 CEOs since 2002. And is Founder of The CEO Boot Camp™ and Entrepreneurship University™. Mr. Norton works with companies to triple their chances of success in launching new companies and products. He helps established companies scale faster using the six AirTight Management™ systems. And helps companies raise capital.
What can we help you with today? Scaling, training, consulting, coaching?
Call (619) SCALE06 or (619) 722-5306 9am-6pm CT
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