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Finding External Funding – What is your money future?

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It is critical for the success of your business to understand when outside capital could be right for you, and how to be ready when you need it. Week 4 of Money Month will provide you with the resources you need to develop the right funding strategy, how to access different types of capital, and how to move forward after you get the money. 

Week 4 will build on all the skills and knowledge from the first three weeks, and provide you the knowledge and confidence necessary to get the funding you need to grow! 

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Finding External Funding – What is your money future?

  1. 1. Making money: Know Your Worth Managing money: Understand what worked & what didn’t Internal money: Invest wisely today External money: Find capital for future growth
  2. 2. Getting Funded is TOUGH!  Success rates are low  You don’t get a lot of shots  The process is counter-intuitive & time-consuming SO knowing that you’re a good investment is essential!
  3. 3. Three simple (not easy) steps:
  4. 4. What kind of money do you want?
  5. 5. Assess your funding readiness 1) How much money do you need? 2) What exactly will you use it for? 3) Do you review your financials & KPIs regularly? 4) Can you share your story with investors? 5) Do you have an exit strategy?
  6. 6. Funding is Risky! Talk talk talk Partner $$ out Wait… Wait… Wait… Biz sale Talk talk Underwriter $$ out Payment Payment
  7. 7. Getting money takes time Attract them •DEBT: Banks / alternate lenders •EQUITY: Friends, Family & Fools/ Angels / VCs •“FREE”: Grants, contests, crowdfunding Get a “Yes” •Convince your banker, then get through underwriting •Get past associates, convince the partners •Impersonal, opaque decisions Prove it •Prove that you can pay back NOW •Prove that you know what you’re talking about & can execute •Included in request Sign & cash in •Sign documents, get your $$ in 10-20 days •Wait until all investors have signed & paid to get your $$ •Arbitrary deadlines Make them happy •Generate enough cash to pay them back starting next month •Sell your biz in 5-7 years •Deliver results (IP issues?)
  8. 8. What if you don’t get the money?
  9. 9. Attracting Smart Money Through Strategic Partners Who Shares Your Ideal Customers? B2B? B2C? B2B2C? Do you Represent a Strategic Advantage? Keep risk off their books? Take a load off them? Long term if it works? Who Has The Employees You Want? Existing Connections? Issue You Can Solve? Mutual Strategic Value? Who Cares About Your Credentials or Value? Do you remove a cost? Does this help PR/Story? Does status open doors?
  10. 10. What did we learn? • Are you ready to raise money? • No one’s waiting to write you a check • Don’t let “No” stop you from moving forward

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