“Anyone who stops learning is old, whether at twenty or eighty. Anyone who keeps learning stays young. The greatest thing in life is to keep your mind young.”
~ Henry Ford
There are 5 keys to raising money for your company:
- Know that funding is a progression. No matter how cool your company or idea, you’re generally not going to receive a $10 million check from the get go. Rather, you will typically raise several “rounds” of capital. You start with smaller amounts, and then as your business makes progress (and your valuation increases), you are eligible for larger rounds of funding.
- Find the right sources of funding for now. Some forms of funding are much easier to raise than others. And based on your stage of development (e.g., startup vs. established business ready to scale), different forms of funding are more relevant.
- Cultivate relationships early. Building trust is essential in raising capital.
- Create your business plan now and keep it up-to-date. Your business is always changing. And as it changes, different forms of funding become available, and you’ll come across different types of lenders and investors.
- Always be a marketer. Entrepreneurs that are best able to market their companies to lenders and investors are the ones who raise the money.
Would more funding allow you to significantly grow your company?
Then you need to figure out which sources of funding you can raise today.
Today’s Question: The Ford Motor Company manufactured 1 million cars for the first time in 1922. In what year did it hit the 2 million mark? (the answer will be in tomorrow’s tip)
Previous Question: What were Kleenex tissues marketed as when they were first introduced in 1924?
Answer: Kleenex tissues were originally marketed as a cold cream remover. By promoting it as a cleaner, healthier alternative to towels and handkerchiefs for removing cosmetics, it quickly became a mainstay in households across the nation.
In 1927, the company’s head researcher started using the tissues in place of a handkerchief for his hay fever. It took him 3 years to convince the head of advertising to try to market the tissues for this use. And by late 1930, the use of Kleenex tissues as a handkerchief substitute really took off.
The lesson here is that your products and services may satisfy customers in ways you might not know and never intended. It’s interesting that it took Kleenex 3 years before it tried advertising the product for the new use.
Importantly, in order to find breakthrough products and services, don’t be afraid to 1) speak to your customers and 2) experiment.
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