Sometimes however we can get so stuck in the middle of "how?" that pooling some cash can seem unattainable. Happily, there are more ways out there than you may think, so don't let the cash crunch stop you from moving forward.
I encourage you to explore as many financing opportunities as possible before moving forward on any one of them, so you can be confident you know which strategy is right for you.
Look at everything from personal, unsecured micro loans or promissory notes to traditional bank or SBA loans, and up to venture capital or angel investors.
According to Christine Comaford-Lynch in one of my favorites books, Rules for Renegades: How to Make More Money, Rock Your Career, and Revel in Your Individuality
, there are four basic avenues entrepreneurs explore for financing:1. Sales of the product or service
2. Loans from an individuals or institutions
3. Grants from the government or institutions
4. Selling equity in the company.
If you determine you require outside funding, I strongly suggest developing a solid capital acquisition strategy. Again from Christine, start to develop your strategy with with four basic questions: (four seems the magic number here...)
1. How much do you need?
2. When do you need it?
3. From whom do you want it?
4. What compromises will you accept?
These four questions are a good starting point, but really for a great in-depth 101 on capital acquisition, I recommend grabbing a copy of Rules for Renegades: How to Make More Money, Rock Your Career, and Revel in Your Individuality
, and spending some time in chapter/rule 8 - "Work your Money Mojo."Even if you are plugging along okay today, get a copy of Christine's book and start planning for growth. The last thing you want is to be caught in the middle of a great growth opportunity with no cash to take you to the next level.
Also, getting the brain juice flowing on this issue, just might encourage additional growth (or the kick in the pants you need to get something going at all) for your enterprise.
So, get out there and extract that cash! Your net worth will thank you in the long run.
