1. ‘Where to get the money?’ comes after ‘Do I need the money?’
Do You Need Investors?
‘Where to get the money?’ comes after ‘Do I need the money?’
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2. Choose the right investors and communicate effectively with them.
The Goal
Choose the right investors and communicate effectively with them.
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3. Key Points Types of Businesses Looking For Financing
Business stages & timing
Cash required for each stage
Example
What not to do
Your next steps
Wrap up
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4. Grab your worksheet and follow along.
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5. Types of Businesses Looking For Financing
No Chance Financing
Too Late Financing
No Reason Financing
No Needing Financing
Financed
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6. Phase
Planning
Launch
Growth
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7. Timeframe
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8. Planning Business cards? Webpage? Contracts? Action
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9. Cash Planning Launch Supplies / Office Space $2000
Business Cards / Webpage / Contracts
$2500
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10. Business Cards / Webpage / Contracts
Sales
Planning
Business Cards / Webpage / Contracts
Cost = $2500
Sales = $1000
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11. Example
John Doe is excited to launch his Landscaping business. He is planning for courses and new equipment. John currently has savings of $5,000 to invest. Each sale is expected to generate $2000 in profit. In anticipation of the launch, he is projecting future investment requirements. Does he need investors?
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12. Take landscape design certification course
Example
Phase
Timeframe
Actions
Cash
Number of Sales
Starting Position
$5, 000
1 – Planning
4 Months
Take landscape design certification course
Rent equipment
$1500
$5000
Pre-Launch Position
$-1,500
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13. Now think about his launch and growth stage. Does he need investors?
Practice: Landscape
Now think about his launch and growth stage. Does he need investors?
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14. Practice: Landscape 2 – Launch 3 Months Advertising Hire assistant
$4000
$6000 3
For total of $6,000
Post-Launch Position
-$5,500
3 – Growth
1 Year
Hire staff
Continue Advertising
$10,000
15 for total of $30,000
Post-Growth Position
$10,500 18
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15. Practice: Landscape
John learns that he will need to obtain additional financing to fund the Planning and Launch phases of the business.
John can see that for his overall business to be successful, he needs to be working on acquiring $5,500 worth of financing at a minimum, or his business will not be successful.
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16. Top Mistakes To Avoid
Ignoring cash flow because you don’t think it’s important.
Not thinking ahead on how you will get funding, if you eventually need. No matter how many months or years it may be, always develop a plan just in case.
Thinking that your personal credit score has little to do with whether you get a bank loan.
Looking for investors at the very last minute.
Using only a single investor and putting all your eggs in one basket.
Incurring all of the expenses upfront even when you can hold off on some.
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17. Now What? Figure our if you need funding
Figure out what type you need (Contracts for Investors)
Begin facilitating that relationship
Try and have options
Prepare to negotiate
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18. Key Points Types of Businesses Looking For Financing
Business stages & timing
Cash required for each stage
Example
What not to do
Your next steps
Wrap up
© 2018

19. Choose the right investors and communicate effectively with them.
The Goal
Choose the right investors and communicate effectively with them.
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20. You need investors if you need more cash than you have.
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