If you are looking to start a business, maybe you need equipment, a new computer, some money to put away so you can quit your job and dive whole-heartedly into your business.
Maybe there will be a mentor who arises that you know, deep down in your soul, that you would like to hire so you can move forward quickly in your business and with the knowledge of someone who knows what they are doing.
Maybe there is an industry event that you know attending will give you the knowledge and motivation to leap forward in your business, but not only that, you know that just surrounding yourself with like-minded business people is the one quintessential fact for one’s business success. In order to go, you will need, not only the investment for the event, the hotel, the travel arrangements and 9 times out of 10, that famous, awful word pops up that stops everything….’but.’
‘But I just don’t have the money to…(invest, to go, to hire her, etc.)…’
Like it or not, as entrepreneurs, we are going to be faced with these scenarios again and again in our careers. Not only must we know what are the right things to invest in, but we also be savvy enough to find money to submerse ourselves in these opportunities.
What kills entrepreneurs 9 times out of 10 is the ‘scarcity’ mentality.
Most of you reading this will know it well, ‘Dang, I so need mentoring with my business… (you go as far as researching it and get a $Number…how much it costs and your internal ego takes over)…‘What!? It’s THAT much to hire someone to help me move my business forward in leaps & bounds? I don’t have that kind of money. I’ll figure it out myself!’
The reality of that answer is, ‘Good luck with that.’ That mentality does not serve you. That mentality will NEVER allow you to climb the ladder of success. Never.
I’ve seen this mentality end too many good entrepreneurs’ careers before they have even started heating up!
So, how do we take you from ‘scarcity’ to an abundance mindset to build your business?
By helping you create confidence in yourself & your business by helping you create operating capital.
Here are 10 ways to raise funds for a small business:
1. ALWAYS do the research. Something you feel you need to build your business is your subconscious telling you that’s what you need. You’ve heard it…’your gut instinct,’ ‘that little voice telling you to…’, ‘that feeling you felt when you heard of an opportunity.’ Those are messages to tune in to. To listen to! They are your subconscious speaking to you, but your ego (your mind…the mind that has been programmed your whole life to ‘protect’ you, however, realize that it’s actually HURTING you…daily…when you listen to it), will take over and give you all the reasons why that opportunity won’t work.
This causes you to stay the same, to stay ‘hurting,’ to stay the victim. This action does not serve you. Realize it now! (‘The Power of Now’ by Eckhard Tolle is the book to read on this topic…if you’re an entrepreneur (or thinking of becoming one), go get it now!)
Listen to your subconscious, and stop your mind from controlling you.
(DISCLAIMER: I am not a tax expert, nor am I trying to be one. The following list is compiled of strategies that I have personally used and/or have learned from venture capital experts.) Please consult your tax attorney or financial planner for any taxes, penalties, etc. that may be incurred)
2. Take a look at current or previous 401K accounts. You can withdraw funds from these accounts. You will need to pay taxes on the funds, however, 401K’s are an excellent resource for money that could potentially earn you a large income, easily covering the tax penalties incurred.
3. Take a look at the cash values in any Life Insurance policies you may have. Again, there may be a penalty paid in interest, however, as #2 states, the penalties are usually worth it when you invest your capital wisely.
4. There is good debt. Using credit can be very scary, but for the entrepreneur with the right mindset, debt is necessary to move forward. Again, with the right mindset, there is a ‘no matter what’ attitude that says, ‘I will take on this debt now to propel my business faster and will pay off this debt in 3 – 6 months (or whatever it may be according to the size of the debt).
5. Refinancing your home. If you are one of the few who still has equity in their home, this is a great way to finance your business. I know a woman entrepreneur who refinanced her home to pay $100,000 to personally coach one-on-one with my mentor, Ali Brown. When Lisa hired Ali, she made $150,000 her previous year in her business. The year she worked with Ali, her income went to over $2 MILLION!!
Yes, she was ready for such exponential growth and had done a lot of work prior, but do you think she was happy she refinanced her home to raise the capital to work with Ali? I would say so.
6. Make a list of potential investors – If you need help with this, use this Memory Jogger for ideas.
This is a great way to compile a list of people who may want to potentially invest in your business. They can invest anywhere from $100 to thousands depending on their own current situation. Don’t rule anyone out.
Offer them stock-options in your business. For example, they invest in your business, you offer to repay the loan within 6 months, plus a percentage of company profits to reward them for their faith in you from the beginning. You will need to have a contract drawn up for any investors by an attorney to be sure both sides are covered.
7. Learn the language of capital – learn how to speak like a successful businessperson and have passion for why you are raising capital. If you sound like a nervous kid asking dad to take out the car on a Saturday, you will not get results you need.
Talk venture capital like a professional, and you could build enough capital for you to comfortably invest in the mentoring, advertising & education that you need to get your business to a level where you can start to pay back your borrowed capital in a very reasonable amount of time!
Talk like a seasoned professional, and you will have money opportunities available to you whenever you find the need!
Write out a script to investors. Make the script short, to the point: why you need the capital, what the terms of the contract are, and how much capital you are asking for.
***You are not here to tell your investors EVERY aspect of your business. If they are a savvy investor, they just want to know how they will make a profit, and secondly, some may not have any interest in your business and opt out of investing. That is your own fault. Communicating too many details can be overwhelming, boring, and just plain overkill. Although you love what you are doing, it may be the most boring business to your potential investor.
Say too much, and they may just get rid of you to shut you up. Say just enough, tell them how much money they could earn and when they will get their investment back and they will write a check wishing you well!
8. Have a credit party – If you are out of credit, ask your investors to allow you to borrow their credit. Ask each investor to invest $XXX amount of credit for you (depending on how much you are trying to raise). Just like we talked about above, let them know when you will return the invested amount with interest, and be on your way to raising the capital needed!
9. Ask your credit card bank for a one-time extended payment line. Let them know it’s for an educational purchase (if hiring a mentor) and ask to pay it back in small amounts over a three year term.
10. Stay Present! When you have utter faith, utter belief in what you are doing and what your building, nothing will stand in your way. If you find that it’s easy to say, ‘Darn! I’d love to hire Vidette to have her mentor me, but I don’t have the money…oh well…’ you don’t want it badly enough.
Or, if you read the above and said, ‘I won’t do any of that. I’m not going to risk my friendships and/or credit for my business,’ you are not passionate about it. It’s that simple.
Set the intention to raise the funds you need for a small business. Stay present to everything you do to raise the funds. Don’t think ahead to what you’ll try next. Don’t give a second thought to the person who just denied you money. They just didn’t see it. Just stay focused on what you are doing at that particular time and you WILL have success!
You must trust the process above. When you honestly try all the above, you will find the capital you need. I promise. I have done it and continue to do it.
No business costs nothing. You must grow, educate yourself, find mentors who are doing what you want to do, and you must pay to be around millionaires…be at functions where they are. You will become like the average of the people you hang out with. Who are you surrounding yourself with?
Investments you make in yourself and your business are the most important thing you can do for substantial growth.
Get your mindset wrapped around this and you will have no problem finding the capital you need to move forward…drastically!
This has been another V2 Concept by Vidette Vanderweide. If you liked it, do me a favor and ‘Share’ it on Facebook or ‘ReTweet’ it below!
Your ‘Delicious’ Mentor,
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