360° Coverage : Debunking Entrepreneurial Myths: I Need More Money!

1 Updates
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...

Filed under: news

 
 
 

36 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
1

8 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Strict social hosts help curb underage drinking
New York, Oct 28 (IANS) Teenagers are less likely to drink at parties when they live in communities with particularly strong social host laws, finds a US-based study.
 
 
Windowless plane to take off soon
London, Oct 28 (IANS) Imagine flying in a plane sans windows! Your imagination may soon become a reality with a British company working on such a plane.
 
 
Women tend to ignore heart symptoms more
Toronto, Oct 28 (IANS) Partly due to a perception that coronary artery disease is a "man's disease", women are more likely to delay seeking care when heart symptoms strike, a research has found.
 
 
Snoring masks don't kill sex life: Study
New York, Oct 28 (IANS) A common therapy to tackle obstructive sleep apnea (OSA) does not become a hindrance between the sheets, says a study, allaying fears of OSA patients who believe the therapy interferes with sex.
 
 
 

Latest from the Network

Snoring masks don't kill sex life: Study
New York, Oct 28 (IANS) A common therapy to tackle obstructive sleep apnea (OSA) does not become a hindrance between the sheets, says a study, allaying fears of OSA patients who believe the therapy interferes with sex...
Read more on Celebrity Balla
 
Nine alive buried in China landslide
Beijing, Oct 28 (IANS) Nine people were buried alive Tuesday by a rain-triggered landslide in southwest China's Yunnan province, authorities said. The disaster struck Xiaoxin village in Dongchuan district of...
Read more on Politics Balla
 
Skin allergy makes Fox miss 'Teenage...' premiere
Beijing, Oct 28 (IANS) Actress Megan Fox was forced to skip the premiere of her film "Teenage Mutant Ninja Turtles" here after she developed skin allergy. On Sunday morning, the actress joined producers for a press...
Read more on Celebrity Balla
 
Advanced hearing aids distort music more
New York, Oct 28 (IANS) The more advanced an hearing aid is today, the worse experience it would offer to music lovers who use such aids, says a study. Less sophisticated hearing aids might actually be more compatible...
Read more on Business Balla
 
Hair disorder could signal dental decay
Washington, Oct 28 (IANS) If you are experiencing hair fall problems, your teeth may require extra care as researchers have found that hair disorder could increase risk of dental decay. Keratins, proteins associated...
Read more on Business Balla
 
Three Red Cross workers cleared of Ebola in New Zealand
Wellington, Oct 28 (IANS) Three New Zealand Red Cross healthcare workers have been cleared of possible Ebola infection after being put on "self-monitoring" since returning from working in Ebola-affected countries in...
Read more on Business Balla
 
Hugh Jackman has third session of skin cancer treatment
Los Angeles, Oct 28 (IANS) Actor Hugh Jackman has been treated for his third basal cell carcinoma in 12 months. The actor had a basal cell carcinoma removed in November 2013 as well as in May this year. The actor's...
Read more on Celebrity Balla
 
MIT survey reveals sexual assault on campus
New York, Oct 28 (IANS) Nearly 17 percent of female and five percent of male undergraduate students at the Massachusetts Institute of Technology (MIT) have revealed that they were sexually assaulted on the campus, said...
Read more on Politics Balla
 
Flashlight apps stealing your data?
New York, Oct 28 (IANS) Do you use a flashlight app on your smartphone? Security experts warn that free flashlight apps are secretly recording sensitive information from your phone. According to a US-based security...
Read more on Politics Balla
 
People flee as lava reaches Hawaiian village
Honolulu, Oct 28 (IANS) Many residents of a Hawaiian village have fled their homes, threatended by the flow of lava from Kilauea Volcano, a media report said Tuesday. People at Pahoa are running away as the lava from...
Read more on Politics Balla