Talk to almost every entrepreneur and ask them if more capital would help them grow their business faster. Almost always the answer is a resounding YES! That is even true of most of our IBI CEO's, who have raised lots of capital.
Just like jello, there is always room for more.
Most new entrepreneurs don't understand how capital works. They think that you get an idea, write some kind of a business plan, then peddle it to a few people with money and get funding.
And even though there are instances where that has worked, you wouldn't even take those odds for fun in Vegas. It's like playing your guitar and singing on a busy corner in Denver and hoping to be discovered. Such miracles have probably happened before, but you wouldn't bet your business on it.
There is a more viable road to getting capital for your business.
IBI Global instructor Scott Degraffenreid has studied the relationship between all kinds of resources and the business who need them. What his study showed is that most companies, even those who are short of important resources, have other resources that are under utilized. He also discovered that in nearly all cases, businesses expend too many resources chasing capital. With less expense and a little more effort they could create a company that is capital attractive.
The implications of Degraffenreid's research is hugely important to your company. Quite simply, it shows that building a capital attractive company will allow you to raise more capital with less effort.
What makes business attractive to capital?
There are many, many ways to add to the capital attractiveness of your business. Some of them are simple and others require a little more effort and knowledge on your part. Here are a few that just cannot be overlooked.
A good idea that translates easily and understandably into significant revenue.
Costs related to revenue that are clearly understood and managed.
Markets that are more than needy. Markets must be willing and willing must be provable.
Management that is proven, including what I call an Aha! member.
Properly protected intellectual property.
A strategy that is clear, easily understood, and at least parts of it proven by someone else.
A 3-5 year plan. Including viable, explainable financials.
Every business in every industry is unique and can find even more valuable and attractive resources within.
Just like becoming a better person, building a better business starts from the inside out.
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