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Debunking Entrepreneurial Myths: I Need More Money!

Debunking Entrepreneurial Myths: I Need More Money!

Feb 12 2014, 12:18pm CST | by

Last week we discussed the popular myth that you need to have a world-changing idea before you start a business. I talked about the need to know the industry you are trying to get into and look for...

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23 weeks ago

Debunking Entrepreneurial Myths: I Need More Money!

Feb 12 2014, 12:18pm CST | by

Last week we discussed the popular myth that you need to have a world-changing idea before you start a business. I talked about the need to know the industry you are trying to get into and look for ways to improve it or make life easier for people in it, rather than inventing the next revolutionary technology. If you find a problem and develop an easy way to solve it, your business will have a good shot at success.

This week I want to address one of the biggest anxieties that many entrepreneurs have to deal with: Money. More specifically, one of the most often-expressed complaints from would-be entrepreneurs is that they need more money before launching. I’ve been in that spot and let’s be honest, there is no way around it: you need money to start a business. But if you need more money to launch there are a couple of helpful tips I’ve discovered during my career.

If you think you need to raise more money to launch your business, the first thing you should ask yourself is whether that’s really the case. As entrepreneurs, we usually think big. I know how easy it is to get carried away by a great business idea. However, I think it’s important to keep in mind that old adage about Rome not being built in a day. Many businesses begin very small and gradually generate enough revenue to fully support operations.

In practical terms, that means if you are at the end of your funds without having everything in place that you’d like to launch with, take some time to reassess. Review your business plan and look for the places you can cut, trim back or alter to save money. As a business owner, this is a valuable skill to learn. In the lean world of start-ups, there is never a time when looking for cost savings isn’t a useful practice. In other words, if you don’t have enough money for everything you had planned, sometimes the best answer is to change your approach.

I also understand that sometimes entrepreneurs just need some startup capital to launch. That’s one of the reasons I became an angel investor. It would be hard to set up a 3D printing shop if you don’t have enough money for a 3D printer. So if you’ve combed through your business plan, cut everything that could possibly be cut, and you need more capital, it’s time to look for investors.

This is a topic I’ve discussed at length here  and I think it’s a good time to revisit it. As an angel investor, I don’t have the time or the inclination to sit through a pitch if the presenter isn’t thoroughly prepared. That’s one reason it’s important to know your industry, the competitors and what problems your business solves. I may not know the ins and outs of your specific business, but I’ve been an entrepreneur long enough to know if someone doesn’t have all their ducks in a row. If that’s the case, you’ve lost me. You simply must have a thorough business plan and a clear, concise vision to attract investors.

This is not to say I haven’t botched a presentation or two in my day. You will likely have to give a lot of presentations before you find an investor. So if you have a rough presentation, shake it off, do your homework and come back stronger to the next investor .

The second thing I recommend is finding an investor who understands what you are trying to accomplish and fits with the culture you want to create. If the investor wants to make unreasonable changes to your business plan as a condition of investment, I’d recommend finding another avenue. It’s tempting to accept the first offer on the table, but if you can’t get behind the direction and vision of your own company, what’s the point?

Remember that having an angel investor is a much more intimate relationship than a venture capital firm or a bank: clashing visions or personalities could undo your business.

Hopefully this is another myth dispelled. Access to capital is important for startups, but you don’t have to let your money concerns dash your dreams. Get lean and find the right investor. What has been your experiences with generating money to start a company?

Source: Forbes Business

 
Update
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the De ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan Rak ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk Seri Hishammuddin Hussein. ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the southern stat ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 million in compensat ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Seri Mustapa Moha ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocati ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaar ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara Skyway (Kidex) ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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