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Where to Find Money in Tough Times

Posted by on October 24, 2011

Your chances of getting a multi-million $ check from a big VC are kind of the same as winning the lottery – tho you would fare better with the lottery than giving away the store to an outside investor.

If you’re ready for round 2, and have exhausted the F,F, & F group, there’s still money around for ventures that make sense.


I’ve seen so many plans where the enterpreneur was so inwardly focused on their own project, they didn’t realize they were a couple years behind the curve – there are competitors out there, farther along, with more bells and whistles.

In the first dot com boom, I saw lots of plans where the team had built “half a company.”  Great product, or service, but no plan or idea how to monetize it.  That’s a relatively important part of the equation.

So where to look?  Strategic partners.  Find your potential biggest customers (if you’re in the B2B arena) and offer them a small piece in return for an investment.  Better yet, let them basically pre-pay for product or services you will deliver in the future, and not have to give up any equity.

Another source is suppliers/vendors.  People you will be buying from on a regular basis.   They are advancing funds to you (in either debt or equity) in return for your commitment of future business.

Finally, remember this about your business plan.  It’s not a roadmap of how to operate, but rather a marketing document used to raise money And don’t hire a outside firm to write the plan, unless it’s a completely collaborative effort.  If you can’t explain it, you can’t sell it.


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