Better Business Building

There are many start-up paths an entrepreneur can take when seeking funding, but I consistently recommend only 1…

Prove People (Customers) Will Buy What You Sell

I’ve seen many entrepreneurs stumble around trying to raise funds, while their prospective suitors all say “we don’t want to be 1st” or “we really need to see some sales”, etc, etc. Proving your model eliminates all of these questions, and puts you on a level playing field.

If you can prove people will consistently pull out their wallet and hand you money for your stuff, raising capital becomes a heck of a lot easier. Angels, VC’s and other private money people are looking for a level of certainty in the potential success rate of the project in which they place their money. There is no greater “magic bullet” in creating this comfort zone in an investor than proving your concept.

Here’s what it proves:
1. You can generate revenues
2. You can generate profits (with which to pay back your investors)
3. Your marketing message is effective (something an investor would like to see you’ve figured out before their funds are at risk)
4. You are committed to the success of the business
5. You as an entrepreneur can create a successful business (and therefore be a candidate for additional funding rounds or completely new business funding)

…And You Can Attract More Than Just $$$

Aside from raising money, proof makes just about everything easier:

- Finding other business partners & resources
- Recruiting star employees
- Getting favorable terms from vendors (another way to fund a startup)
- Selling more product

One of the best side benefits to proving your business model is that you may prove to yourself that you don’t need any funding at all! When you can grow organically, without costly backing, profits are bigger, you don’t have to give up equity, and there are fewer people to answer to.

Besides, next time you might really need funding, and by having built a profitable company without funding in the past, you become much more “fund-able” in the future.

To learn how to prove your business model and start generating profits today, contact us here

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