I get it! You know you have a ‘killer’ business idea.
You have a BIG Vision that you know will dominate your industry …
AND You BELIEVE in your ‘bones’ that you are the next great visionary leader … like Bill Gates or Steve Jobs. That’s okay … confidence is a good thing … as long as you hedge your bets and make smart choices by being prepared for ALL possibilities.
The rest of you reading this have all kinds of doubts.
For those of you who have lots of questions and doubts about the capital-raising process … we truly understand what you are going through.
You’re tired of struggling without the money you know you need … that will take your company to the next level.
You may even have multiple business degrees AND management experience working for a big company … but raising capital for your own business is a HUGE challenge for virtually every entrepreneur. You need to pull out all the stops.
This means I recommend you don’t take shortcuts or skip any potentially helpful steps … (and I know this will sound self-serving, but this is sincere advice: I made many costly mistakes myself when raising capital for my businesses, trying to ‘save money’ by not working with pros).
The bottom line is make certain you invest in the tools or professional help you need, early in the capital-raising process.
In economics and business, experts often talk about ‘Opportunity Cost’. This means you can cost yourself income even if you spend no money.
I have an example from my own past. A partner and I had decided, in the early days of computers to buy a computer to automate our business. We immediately found a top mini-computer manufacturer that had a computer with all the features we knew we needed. The cost was $31,000. My partner was so insistent that we could save some money if we ‘shopped around’.
So we waited …
Long story short, with business pressures and distractions, it took us two years to ‘study’ the market (it was waaaayyy back in the early days of computers) … and when we finally bought the computer (from the same company, by the way) it cost us even more money!
The big mistake was not the extra money we spent, but the missed opportunity and extra revenue we did not earn, by not being first to market and dominating the industry.
This is a critical error that many entrepreneurs make.
The key is to be smart AND take action decisively. And that lesson definitely applies to preparing your company the ‘right’ way to raise funds from investors.