Fundraising 101: 3 Typical Startup Funding Paths

In my previous post, “Should Your Startup Actually Be a Small Business?” I addressed what may be the most important differentiator between a startup and a small business: growth. While I hope it was useful, especially from a theoretical standpoint, I want this one to go directly where the rubber meets the road: How does a startup…

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Bootstrapping Your Business: A Reality Check

Philip Soriano has trouble fitting into dress shirts. This, along with his fashion and business experience, informs his role as co-founder of Hugh & Crye, a menswear company. For the dreamers, starting a small business might feel like stepping out into an open prairie. Endless room for growth, no bosses in sight, unexplored trails to blaze.…

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10 Good Reasons Not to Seek Investors for Your Startup

Sure, maybe you need the money. Maybe that’s what your business plan says. But seriously: Do you really want to have investors involved in your dream startup? I’ve said it before: bootstrapping is underrated. I get frequent emails from people asking how they can get investment for their new startup, and I’ve admitted to being a…

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Angel Investment vs. Bootstrap: Startup Sweet Spot

Successful angel investment is a win-win for both sides, the startup founders and the investors. And I mean win-win right at the beginning, at the time of the investment, not the obvious win-win later when years have gone by and the business succeeds and investors exit. The win-win sweet spot exists from the beginning, when…

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6 Places to Find the Right Investor for Your Startup

One of the biggest myths I have found in the entrepreneur community is that every startup needs one or more outside investors for credibility and success, and perhaps is even entitled to at least one. They don’t realize that according to statistics from Startup.co, almost 60 percent are funded with personal savings and credit, and another…

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Bootstrapping is Much More Fun Than Investors

If you really want to start a business your way without a boss or professional investor hovering over you, then just fund it yourself or through friends and family, and grow it organically. It’s more possible to bootstrap today than a few years ago, as the cost of entry continues to go down. According to…

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4 Ways to Support Your Small Business with Personal Funds

It’s getting tougher for small businesses to find startup capital. Big banks want nothing to do with unproven upstarts—it’s all about “validation.” Conflicting laws make it difficult to raise money from small investors without forgoing public solicitation—a catch-22 for entrepreneurs without deep personal and professional networks. And any funds that do happen to fall into…

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4 Affordable Hiring Ideas for Bootstrappers

The conundrum of many small business entrepreneurs is knowing how and when to engage new staff. When it comes to startups, human capital is one of your most valuable assets. Running a lean, efficient team means every single head count is critical to the current and future success of your business. There’s plenty of ways…

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7 Ways to Bootstrap Your Business to Success

Most first-time entrepreneurs seem to believe the myth that they need a minimum of a half a million dollars to start a business. At least that is usually the lowest number I see requested from our local angel investment group. In reality, over 80 percent of successful new businesses are self-funded for much less—often as little as…

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10 Ways for Entrepreneurs to Meet Cash Flow Peaks

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. I often get asked about the real alternatives to bridge this valley, and…

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