“Strategy without tactics is the slowest route to victory.
Tactics without strategy is the noise before defeat.”
~ Sun Tzu
In my Truth About Funding fundraising training program, I go through the 41 proven funding sources for entrepreneurs so you can choose the ones that are a fit for your company. In this week’s tips, I’ll tell you about some of these options.
Finding a business partner is often a great way to finance your business, particularly if the partner has his own or access to capital.
One concern that entrepreneurs have (rightfully) is that if they partner with someone and that person puts in the initial funding, that the partner will own more of the company then they do. This is in fact typically the case.
To overcome this, you can earn “sweat equity” in your business prior to taking on the partner. “Sweat equity” is a term used to describe the contribution made to a project by people who contribute their time and effort, and not their money.
You can earn “sweat equity” by completing a lot of the non-capital-intensive work such as coming up with the business idea, researching the market, and developing the business plan.
At this point, your business has a lot more value (than if it were still solely an idea) and then you can seek a partner. The partner then buys-in to the business. That is, they write a check to the business in order to get a meaningful equity stake and partner position.
Funding to Start & Grow Your Company
Do you need funding to start or grow your company?
If so, don’t go at it blindly.
Rather, you should use my proven funding strategy:
Yes, you can raise the money you need to start or grow your company.
But you need to raise it in a certain way.
Today’s Question: What was the name of the very first ocean-going vessel built by Englishmen in the New World?
Previous Question: What famous words did Francis Bellamy write to commemorate the 400th anniversary of Columbus’s discovery of America?
Previous Answer: “The Pledge of Allegiance”
“The Pledge of Allegiance” was published in “The Youth’s companion” magazine. Bellamy was on the magazine’s staff.
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