Alternative Business Financing: 40 Tactics to Employ
Created 07/13/2009 - 18:05
Did you know that when I started Growthink ten years ago, I knew very little about raising capital?
Sure, I knew a lot about raising venture capital, but I didn’t know much about financing sources like angel capital or SBA loans. And I knew virtually nothing about creative and alternative financing sources. In fact, since starting Growthink, I have uncovered 40 tried-and-true ways that entrepreneurs can fund their businesses. Most of these ways I had never heard of before. But they work.
Now I’d like to share them with you.
In a few short weeks, I’ll be teaching a select group of entrepreneurs all about these 40 financing sources in a unique multi-part teleclass.
Why is it important to know all of these options for raising capital? You might be thinking “But I just need a loan right now,” or “I’m just looking for angel capital,” or “I know that venture capital is right for me.”
Knowing these 40 options provides you with the flexibility you need to raise capital from multiple sources NOW. it also gives you the ability to raise various rounds of capital in the future.
The truth is, most successful businesses utilize at least 3 types of capital, and usually a combination of debt and equity, as well as “creative” or alternative financing. If you’re only using 1 type of capital, but your competitors have access to several types of capital, you’re at an automatic disadvantage.
More importantly, not knowing about these 40 financing sources, and going after the WRONG sources of capital, is the #1 reason why most entrepreneurs enter the “death spiral.”
What is the “death spiral”? Well, the death spiral is the unfortunate process that typically occurs when an entrepreneur has a great idea and needs money to execute on it.
The death spiral has four parts:
1. The entrepreneur learns a little bit about how to raise money.
2. The entrepreneur gives a whole or half-baked effort to raise money.
3. The entrepreneur fails to raise capital (in fact, they fall flat on their face) because they don’t fully know what they’re doing and/or go after the wrong funding sources.
4. The entrepreneur’s dreams die and they return to their 9 to 5 job.
If you want to avoid the death spiral, and raise funding for your business, I will teach you how to do it. As mentioned, later this month, I will be offering a unique multi-part teleclass that teaches entrepreneurs like you how to really raise capital.