I've watched people struggle through the quicksand of trying to raise funds via promises from venture capitalists, run the hurdles of SBA loan applications, produce mounds of paperwork for bankers -- all of whom ultimately turn them down.
These processes teach some people an enormous amount about their own business and industries by forcing them to create detailed business plans. Others gain nothing but bitterness and foul tempers. However, many of the those who develop thorough plans go on to great success, despite the financial obstacles placed in their paths.
The Quick and Easy Route
What if you don't want to waste your time with all that nonsense? Is there a shortcut that can provide you with risk-free money? Money that you don't necessarily have to pay back? Tax-free money to use 100% to grow your business? Money that could make you substantial profits? If there is, then how do you get your hot little hands on it?
The source is called INVESTORS. I know, you think it's too complicated and risky to go about gaining the confidence of investors — and if they lose all their money, you'll feel so guilty and responsible, you'll never sleep again...
Okay, so let's re-phrase that — SMALL INVESTORS. No more than $1,000 -$2,500 per person. You'd be surprised how many people would be willing to part with such a small sum for the opportunity to make 2, 3,10 times that much money. And should your new venture fail, no one person loses so much that it hurts with a sum that small.
Step right up! Everyone's a winner!
If you already have a small business, you have satisfied customers, clients, patients, etc. If you approach each person face-to-face, many of your regulars will be pleased to pop for this small sum. In addition:
- It gives them a vested interest in your success — you succeed, they profit.
- You will be their vendor of choice for your product or service.
- They will be more than eager to send you referrals.
- They will be more eager to open doors to better, less expensive suppliers.
- They will buy more from you at each visit — because they are investing in themselves!
At the Starting Gate
If you are planning to start a new business, then you'd darn well better know who your customer base is going to be. (Do your marketing research. That business plan isn't such a bad idea, either.) Otherwise any money you do raise will run out surprisingly quickly — before you make your first sale.
Once you've targeted your market and suppliers, go talk to them about investing.
Don't Get Greedy
Your main problem will be too much money. Several people will offer you more than the small $1,000 - $,2500 investment. Why is that a problem? Because, as long as the investment is insignificant, you have these advantages (not necessarily in this order):
- No individual owns enough of your company to tell you how to run it.
- No one person loses enough money to hate you for it, should you fail.
- The more investors you have, the less likely they will band together to oust you from your own company.
- The more people who invest, the more additional business you can generate.
- You don't have to sell enough to give up a controlling interest.
- With such a small investment, you can give each person a very small share of your business.
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