Typically you want to NOT need funding at the beginning. Sometimes it is required but its usually best to start with manageable bites for your business through an intelligent strategic plan.
For example, one of my mentored students wants to open up a niche coffee shop but she has no money for an extra rent, staff, furnishings, equipment. Its a reasonable expense but over her budget or her current ability to raise.
Well, after talking to me and fellow Master Entrepreneur Chris Castillo we elaborated a plan where she leverages things she loves to do such as writing and marketing to draw people to the ideology of her niche cafe idea first, writing a little handbook on the subject and producing podcast-like videos on the subject in the meantime.
These are things she loves to do and can do for free.
Through this initial process she has a blog and youtube video channel, gathering feedback and followers through her marketing talents while getting the properly tuned materials for the handbook she will write (another thing she loves to do, writing). After the booklet is finished, she can self publish and share the book at very low cost to her followers, people she meets as well as publishers and media to draw attention to her idea and gather people's attention on her.
At that point, with some reasonable amount of work, she can likely draw funds from multiple sources having gathered a following of interested buyers she can demonstrate, publicity and other forms of leverage that makes it easier to acquire the necessary funds to buy what she needs to make the idea come true in reality. All the better, she also has regional clients that like the idea and that are waiting for her to open her doors, making it easy for an opening launch.
So you see, there is always a way to even start businesses that require significant funds by strategically preparing through good planning.
Bottom line is you gotta think strategically, creatively and many times sideways to create success with your idea. Most importantly if you don't have a network of helpful high class advisors, get a mentor to help you out with this. It will be the best time (and sometimes a bit of $$$) investment you'll ever do. Be different, be awesome!
If any of you want to have our help from Master Entrepreneur, please feel free to contact me directly and I'll let you know what we can do for you.
Starting slow and bootstrapping is a good place to start. This approach gives an entrepreneur the opportunity to test the business model to see that it works. Once an entrepreneur has a proven business model funding is easier to obtain and the founder will have a track record to show an angel investor or VC.
ReplyDelete