If you really want to start a business your way without a boss or professional investor hovering over you, then just fund it yourself...
One of the first challenges new entrepreneurs face is finding a way to finance their businesses. You have a great business idea but little money to implement it; and, like every entrepreneur before you, you try to scrounge enough money to launch your startup—your dream.
Startup equity splits are one of the leading causes of problems between founders. Slicing Pie author Mike Moyer and I discuss funding your company without funds by using a dynamic equity share, his novel approach to allocating equity.
Entrepreneurs often know more about running their business than they do about raising funding from venture capitalists. As a result, their attempts to get...
You can't create a realistic business plan without knowing how much it will cost to get your business up and running. If you don't have an idea of your startup costs, you won't know how long you'll have to bootstrap, how much funding you'll need, how quickly to scale. In other words, without calculating your startup costs, you don't really know where you're going—or how you're going to get there. And your company could fail before you even hit the break-even point.
When meeting with investors, during the period devoted to feedback after your presentation, you will hear comments and recommendations that don't resonate with you.
A common question I get is "How do I get a bank loan to fund my startup?" The default answer is that it probably won't happen, because most banks just don't make bank loans to startups. The failure rate is just too high, and startups typically don't have the assets or revenue stream to back up the loan. That's why Angel investors are so sought after by entrepreneurs.
Crowdfunding, sometimes also referred to as "how to get strangers to pay for your stuff," is a relatively new concept. If you're not familiar with it, popular crowd funding sites like Kickstarter or Indiegogo can help people to fund projects that they wouldn't be able to get a traditional loan for.
Last month, the Gender GEDI Index—the branch of Dell's Global Entrepreneurship and Development Index focused on opportunities for women—ranked the U.S. first out of 17 countries as a haven for female entrepreneurship. However, as even the U.S. scored only a 76 on a 100-point scale, it's clear that there are still challenges facing women entrepreneurs in this country.
I'm seeing more and more marketing showing up about so-called crowd funding these days. Sorry, but no. Not yet. Reports of crowdfunding in the U.S. are, as of today, just wishful thinking.