Oct 07 2015
Your Role In History As An Entrepreneur
F I N A N C I N G
Adapted from the book 30 DAYS TO THE NEW ECONOMY written and published by Peggy Salvatore
We already explored the potential of the effect of the changing financial realities of the New Economy on your Internet business. Some of the old gatekeepers of investment capital have been supplanted by the ability to reach out directly to potential investors.
For small entrepreneurs, you may only need a few thousand dollars. With the amount of free and low-cost resources at your disposal, you can start a substantial business with little startup cash. That means many people can build their business out of pocket.
There are many benefits to funding your own enterprise. You have no debt except to yourself. You retain control of the business and you own it 100% outright. And you spend your time on your business, not court- ing potential investors. If you can do it, self-financing is the way to go.
If you need to attract investors for a larger idea, you can go directly to individuals. Wise investors (which is what you want) will vet you and help you by making sure your idea is viable and you are able to execute it professionally. Consider wise investors another advantage that you take into your venture.
You may be the person who imagines the concept, but you don’t want to go it alone. Wise investors will look at the credentials of your support system as well as your own ability to execute your ideas. The more advisors and team members you have in your corner, even those part-timers and professional friends, are very important to your success.
You want others to help you hone your ideas, promote your products and services, and be your cheerleaders on days when you need one. When you are looking to attract capital, that team will make or break your ability to do so.
Be strategic about your partnerships. A geek with sales skills might be able to sign up customers and design websites but not write content. A strategic partnership with a content writer (who may even be in a different country!) who has no site design or sales skills, can accomplish more than either can working alone.
And there’s no legality (besides perhaps a dated, mutually-signed “letter of understanding” to set forth what’s agreed) involved, and no complicated financing involved. What there needs only to be is separate skilled businesses or individuals with mutual trust and ambition. It can work like barter with a split-fee arrangement.
Build bench strength where you have weaknesses
Make sure the human resources you have on board support your mission and can conduct all the internal business processes required to operate legally, ethically and with solid financial plans.
Finally, be realistic about the amount of financing that you need. If you overestimate, you will spend your time raising money for things you don’t need or could easily and more quickly do yourself. If you underestimate, you will get only partway to goal.
A great realistic plan is to start your business in small and manageable chunks with the resources and financing at your disposal, and when the marketplace responds with interest and orders, you can raise the stakes.
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C’mon back TOMORROW 10/9 for Day 24 —
Are you your own Department of Internal Revenue?
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For more information on Peggy Salvatore’s book: 30 Days to the New Economy [© Peggy Salvatore 2015. All Rights Reserved.] click on ENTREPRENEUR NEWS or visit ow.ly/RysnP for the E-book
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