Table of Contents

Rule 3. Act Funded

R

Most entrepreneurs expect to raise money from investors as part of starting their company.  Only a tiny percentage receive any such investments.

The companies that do raise money either: (a) are started by entrepreneurs who have raised money before; or (b) have customer “traction”, i.e. growing usage or small amounts of increasing revenues; or (c) are growing madly and do not need the money.

The companies that are passed over by investors: (d) are unproven ideas; or (e) asking for unrealistic investment amounts or terms; or (f) have some previous investment which has been all spent, but not much to show for it.

Of all these choices, the best to be is (c), not in need of investors.

This is true if you are raising money.  It’s also true if you are trying to add members to your team.  True again for closing sales.

So how do you act funded, even if you are not funded?  Start with Rule #1, and spend the tiny amount of money needed to look established.  Add in Rule #2, making your words sound like your company exists and is making progress.

On top of that, show up at networking events, conferences, and anywhere else where you will be seen by the right people.  And finally, when talking with investors, potential recruits, and potential customers, remember that they have no idea how many customers you already have, nor how much money is in your company’s bank account.  Don’t lie, but neither start talking about “just getting started” or “landing your first customer” or anything else that sounds like you are just getting started and still looking to land your first customer.

Books

HardcoverThe Next StepThe Next StepThe Next StepThe Next Step The Next StepThe Next StepThe Next Step

Podcast

Fledge

Recent blog posts

Categories

Archives