Tag Archives: cash

6 Methods for Raising Money for Your Startup (and Their Tradeoffs)

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SIBP-Blog-NEW-B-2At some point, your business will need to raise money. Maybe it’s because you’re running out of startup funds, or perhaps it’s because you’re looking to expand your operations. Whatever the case, you’re going to need to bring in some more cash.

Now, you’re faced with an important question: Which source of capital makes the most sense to pursue? It’s important to not only understand what your options are, but also what the cost/benefit trade offs are for each of those options. To put it another way: What will it ultimately cost you to raise different forms of capital relative to what you get out of it? Continue reading →

Cash Doesn’t Equal Customers, Part 2

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Image source: https://www.flickr.com/photos/76657755@N04/

Image source: https://www.flickr.com/photos/76657755@N04/

I’ve coached a wide variety of businesses, and it’s not uncommon for entrepreneurs to reach out to me directly when they need help. In my current Kauffman Foundation Entrepreneur-in-Residence role, I’m often contacted by companies looking at the possibility of bringing in some form of outside funding. One day, out of the blue, I was contacted on LinkedIn by a small educational technology company in my home region of Western North Carolina.

After talking with the founders, a husband-and-wife team, I realized the company had good potential for growth. They have great products, they had done their homework, good traction, and they were both dedicated to making their company succeed. But everything wasn’t perfect. They wanted to grow the company, and they needed money to pay for that growth. Continue reading →

Cash Doesn’t Equal Customers, Part 1

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Image source: https://www.flickr.com/photos/76657755@N04/

Image source: https://www.flickr.com/photos/76657755@N04/

One of the biggest mistakes early stage companies make is confusing the need for more customers with the need for more cash. It’s a very common misconception, and one I encounter all the time as a business coach. It often happens when the founders hit a wall with the company’s growth, and the only solution they can see for getting to the next stage is raising more money for things like bigger space, more staff or more equipment.

I’ll sit down with these entrepreneurs and managers to talk about their long-term strategies and growth plans, and I hear something like this: “We’ve got a great product. It’s going to change the world. But we just can’t get it off the ground, so we need a bunch of money so we can buy all the things we need to be successful.” Continue reading →