money

When raising money, use the Goldilocks Approach

Latest posts by Rich Sloan (see all)

Love the instincts and wisdom you entrepreneurs demonstrated in the “Show Me the Money!” blog challenge!

There are two really important principles to remember when seeking funding for your business.

1. Make sure you have an ‘alignment of interests.’ This is when you and the provider of the money have similar goals for the investment. For example, you would have the same timeframe in mind for return of the capital. Or you could have the same long term vision for your business plan. If either of these (timing/vision) are out of sync, you may have just received funding for one of the biggest headaches of your life.

2. Practice the ‘Goldilocks Approach’ to funding. Basically, this strategy (illuminated in our book extensively) helps you identify how much money you need, when you need it, and who’s the best party to get it from. Any time you get the wrong funding, you risk getting burned or having a bad taste in your mouth.

We say it’s always better to say no to money that isn’t a good fit because ultimately it can ruin the business you’ve always dreamed of starting up.

Trust your instincts. Get references. Explore ALL of your options. And accept funding only if it’s ‘just right.’

Total
0
Shares
Previous Article

Business Startup Advice : Tech Self-Sufficiency

Next Article

Small Business Management : Making the Most of Employees

Related Posts
supply chain
Read More

How to Keep Vendors and Clients Happy During Supply Chain Hiccups

Supply chain breakdowns are happening due to global disruptions, rising costs and increased consumer expectations. Businesses can't always stop supply chain hiccups, but they can learn from them and limit their impact on vendors and clients. How a business responds to a supply chain issue can have far-flung effects. A company that is proactive and...
Read More

WJR Business Beat: Win $10,000 Grant Through Verizon Program (Episode 410)

On today's Business Beat, Jeff provides details of the Verizon Small Business Digital Ready program, including free resources, coaching and $10,000 grants to get your small business up and running. Tune in below for more details:     Tune in to News/Talk 760 AM WJR weekday mornings at 7:11 a.m. for the WJR Business Beat....
pitch your business idea
Read More

How to Pitch Your Business Idea to Startup Investors

Securing funding, whether for a startup or an established business, is not an easy task. A strong startup concept won’t be enough when approaching investors; you'll also need an exceptional pitch to sell it. Let's look at what defines a startup pitch, a few different types, and how to create a fantastic one for your...
home-based businesses
Read More

The Value of Home-Based Businesses to Economic Recovery

The challenge of America’s economic recovery, in the wake of the COVID-19 pandemic, is to spread it to every community – and especially those that have been historically excluded. The key to meeting that challenge is to appreciate the civic and economic value of an overlooked resource: home-based businesses. There are about 16 million home-based...