It get at least 2 calls a day from people asking me to help them raise money. I always ask the same question. are you starting a new business or is your existing business doing so well you must expand?
Silence.
Then, no, neither. I can’t live on what the business is making and I need money to grow the business.
No one, except perhaps your parents, will put money into a business on that basis.
If you have an incredible idea for a business and you already have substantial “skin in the game”, you might be able to raise money. That’s a long-shot.
People want to invest in proven businesses, not long-shots.
When a business is doing so well that it cannot keep up with orders unless it opens a new factory, the money will be there.
When you can’t make rent it will be very hard to get a loan through any legitimate channels.
Don’t even think about wasting your time chasing “venture capital” or “angels”. Those people have money because they know how to handle money. Dropping cash in a failing business isn’t wise.
So what to do?
At the first sign of trouble, get some expert advice while you can still afford to spend a couple hundred bucks!
Chris Reich, TeachU
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