don’t raise money until you have a real business and you have some momentum
business and you have some momentum
business and you have some momentum behind you otherwise you’re going to get
behind you otherwise you’re going to get
behind you otherwise you’re going to get killed on your valuation and it’s going
killed on your valuation and it’s going
killed on your valuation and it’s going to chew up all of your time not giving
to chew up all of your time not giving
to chew up all of your time not giving you anything that to work with the build
you anything that to work with the build
you anything that to work with the build your business hi I’m Evan Carmichael I
your business hi I’m Evan Carmichael I
your business hi I’m Evan Carmichael I believe that hungry entrepreneurs
believe that hungry entrepreneurs
believe that hungry entrepreneurs deserve help and today maintain a
deserve help and today maintain a
deserve help and today maintain a question from one of my newsletter
question from one of my newsletter
question from one of my newsletter readers Norman who wrote in the say good
readers Norman who wrote in the say good
readers Norman who wrote in the say good afternoon mr. Carmichael my name is
afternoon mr. Carmichael my name is
afternoon mr. Carmichael my name is Norman I’m a novice entrepreneur I’ve
Norman I’m a novice entrepreneur I’ve
Norman I’m a novice entrepreneur I’ve been trying to get into entrepreneurship
been trying to get into entrepreneurship
been trying to get into entrepreneurship for a little over three years now i
for a little over three years now i
for a little over three years now i graduated college you want to start my
graduated college you want to start my
graduated college you want to start my business I need five thousand dollars
business I need five thousand dollars
business I need five thousand dollars for capital for software and coaching I
for capital for software and coaching I
for capital for software and coaching I know it doesn’t seem a lot but I can’t
know it doesn’t seem a lot but I can’t
know it doesn’t seem a lot but I can’t come across the money I was hoping you
come across the money I was hoping you
come across the money I was hoping you give me some direction tips from in the
give me some direction tips from in the
give me some direction tips from in the right direction hope to hear from you
right direction hope to hear from you
right direction hope to hear from you soon Norman Norman raising capital sucks
soon Norman Norman raising capital sucks
soon Norman Norman raising capital sucks ok it takes up a lot of your time it
ok it takes up a lot of your time it
ok it takes up a lot of your time it doesn’t let you focus on your operations
doesn’t let you focus on your operations
doesn’t let you focus on your operations and you get killed on the valuation now
and you get killed on the valuation now
and you get killed on the valuation now first of all if you’re only raising
first of all if you’re only raising
first of all if you’re only raising $5,000 really the people who should be
$5,000 really the people who should be
$5,000 really the people who should be talking to our friends and family it’s
talking to our friends and family it’s
talking to our friends and family it’s called love money you’re not going to go
called love money you’re not going to go
called love money you’re not going to go out and get an investor to put 5k into
out and get an investor to put 5k into
out and get an investor to put 5k into your business you may be able to
your business you may be able to
your business you may be able to crowdsource fund it on sites like
crowdsource fund it on sites like
crowdsource fund it on sites like Kickstarter but really at that low
Kickstarter but really at that low
Kickstarter but really at that low amount you’re looking at friends and
amount you’re looking at friends and
amount you’re looking at friends and family people who are in your network
family people who are in your network
family people who are in your network you know even distant friends who you
you know even distant friends who you
you know even distant friends who you haven’t connected with in a while can
haven’t connected with in a while can
haven’t connected with in a while can often be great sources but I don’t think
often be great sources but I don’t think
often be great sources but I don’t think you need the money you got to just start
you need the money you got to just start
you need the money you got to just start up start with a service start talking to
up start with a service start talking to
up start with a service start talking to customers get them to see the value that
customers get them to see the value that
customers get them to see the value that you can provide and help you build a
you can provide and help you build a
you can provide and help you build a business around their needs if you’ve
business around their needs if you’ve
business around their needs if you’ve been wanting to start a business for
been wanting to start a business for
been wanting to start a business for three years you got to just start it I
three years you got to just start it I
three years you got to just start it I don’t want you to wait another three
don’t want you to wait another three
don’t want you to wait another three years another three years and you end up
years another three years and you end up
years another three years and you end up in some job you know stuck in corporate
in some job you know stuck in corporate
in some job you know stuck in corporate life and you’re not you’re never able to
life and you’re not you’re never able to
life and you’re not you’re never able to break free of it get started start small
break free of it get started start small
break free of it get started start small start a service go talk to your
start a service go talk to your
start a service go talk to your potential customers find out what they
potential customers find out what they
potential customers find out what they need help with and build a product or
need help with and build a product or
need help with and build a product or service around them you don’t need
service around them you don’t need
service around them you don’t need software you don’t need coaching just
software you don’t need coaching just
software you don’t need coaching just start talking to your customers here’s a
start talking to your customers here’s a
start talking to your customers here’s a flip side okay if you say I really need
flip side okay if you say I really need
flip side okay if you say I really need this money what’s going to happen you
this money what’s going to happen you
this money what’s going to happen you need to spend a lot of time to go out
need to spend a lot of time to go out
need to spend a lot of time to go out and talk to these potential investors
and talk to these potential investors
and talk to these potential investors right if it’s your friends or family or
right if it’s your friends or family or
right if it’s your friends or family or even if you try to get in
even if you try to get in
even if you try to get in so is interested which is going to be
so is interested which is going to be
so is interested which is going to be really hard for 5k you’re going to take
really hard for 5k you’re going to take
really hard for 5k you’re going to take so much of your time doing this when
so much of your time doing this when
so much of your time doing this when instead of pitching investors you could
instead of pitching investors you could
instead of pitching investors you could be pitching customers next you don’t
be pitching customers next you don’t
be pitching customers next you don’t even know if this ideas going to work or
even know if this ideas going to work or
even know if this ideas going to work or not okay going to pitch investors with
not okay going to pitch investors with
not okay going to pitch investors with just an idea rarely works they could put
just an idea rarely works they could put
just an idea rarely works they could put money in and you could lose your shirt
money in and you could lose your shirt
money in and you could lose your shirt and you’re going to lose their money and
and you’re going to lose their money and
and you’re going to lose their money and imagine you borrowed money from your
imagine you borrowed money from your
imagine you borrowed money from your uncle or your sister or whoever it is
uncle or your sister or whoever it is
uncle or your sister or whoever it is some distant friend of yours it doesn’t
some distant friend of yours it doesn’t
some distant friend of yours it doesn’t work out you’re going to feel pretty
work out you’re going to feel pretty
work out you’re going to feel pretty guilty I don’t want that for you it’s
guilty I don’t want that for you it’s
guilty I don’t want that for you it’s better to invest the time into
better to invest the time into
better to invest the time into understanding your customers and seeing
understanding your customers and seeing
understanding your customers and seeing what they want so that when you actually
what they want so that when you actually
what they want so that when you actually go and raise money it’s to build it
go and raise money it’s to build it
go and raise money it’s to build it around something that there’s a need for
around something that there’s a need for
around something that there’s a need for people have said hey I really want this
people have said hey I really want this
people have said hey I really want this help me and the third thing is you’re
help me and the third thing is you’re
help me and the third thing is you’re going to get killed in your valuation if
going to get killed in your valuation if
going to get killed in your valuation if you’re giving up equity in your business
you’re giving up equity in your business
you’re giving up equity in your business they’re going to take a huge chunk
they’re going to take a huge chunk
they’re going to take a huge chunk because it’s risky what are they buying
because it’s risky what are they buying
because it’s risky what are they buying nothing I promise a dream when you go
nothing I promise a dream when you go
nothing I promise a dream when you go out and raise money you want to do it on
out and raise money you want to do it on
out and raise money you want to do it on the best terms possible and that’s going
the best terms possible and that’s going
the best terms possible and that’s going to come after you have some momentum the
to come after you have some momentum the
to come after you have some momentum the easiest type of money to raise and the
easiest type of money to raise and the
easiest type of money to raise and the cheapest is expansion capital you’ve
cheapest is expansion capital you’ve
cheapest is expansion capital you’ve shown that you can you can build
shown that you can you can build
shown that you can you can build something up on your own you may not be
something up on your own you may not be
something up on your own you may not be making huge money it’s not glamorous but
making huge money it’s not glamorous but
making huge money it’s not glamorous but you’ve shown that people will pay you
you’ve shown that people will pay you
you’ve shown that people will pay you for what you do once you’ve proven that
for what you do once you’ve proven that
for what you do once you’ve proven that you’ve separated yourself from
you’ve separated yourself from
you’ve separated yourself from ninety-nine point nine percent of all
ninety-nine point nine percent of all
ninety-nine point nine percent of all the other businesses that investors will
the other businesses that investors will
the other businesses that investors will see I used to be in the venture capital
see I used to be in the venture capital
see I used to be in the venture capital game and most of the people who gave us
game and most of the people who gave us
game and most of the people who gave us their business plan had nothing had an
their business plan had nothing had an
their business plan had nothing had an idea and those guys are not the ones who
idea and those guys are not the ones who
idea and those guys are not the ones who got funded the guys who got funded were
got funded the guys who got funded were
got funded the guys who got funded were the ones who already had some momentum
the ones who already had some momentum
the ones who already had some momentum they already had their product or
they already had their product or
they already had their product or service bill they already had people
service bill they already had people
service bill they already had people using it some people paying them they
using it some people paying them they
using it some people paying them they had proof of concept they had momentum
had proof of concept they had momentum
had proof of concept they had momentum and they needed money to expand that’s
and they needed money to expand that’s
and they needed money to expand that’s where you want to get to it’s entirely
where you want to get to it’s entirely
where you want to get to it’s entirely possible to bootstrap this up spend your
possible to bootstrap this up spend your
possible to bootstrap this up spend your time talking to customers not even
time talking to customers not even
time talking to customers not even selling them just getting to know them
selling them just getting to know them
selling them just getting to know them getting to know their pain points
getting to know their pain points
getting to know their pain points understanding how you can help them and
understanding how you can help them and
understanding how you can help them and have your customers help finance the
have your customers help finance the
have your customers help finance the start of your business if it’s around a
start of your business if it’s around a
start of your business if it’s around a service it’s just your time you don’t
service it’s just your time you don’t
service it’s just your time you don’t need anything you don’t need software
need anything you don’t need software
need anything you don’t need software you don’t need consulting just get out
you don’t need consulting just get out
you don’t need consulting just get out there and start talking to customers and
there and start talking to customers and
there and start talking to customers and they’ll guide you along your path
they’ll guide you along your path
they’ll guide you along your path good luck for those of you watching you
good luck for those of you watching you
good luck for those of you watching you like this video please give it a thumbs
like this video please give it a thumbs
like this video please give it a thumbs up below makes me want to do more for
up below makes me want to do more for
up below makes me want to do more for you and hey do you have a comment about
you and hey do you have a comment about
you and hey do you have a comment about this video I’d love to hear from you
this video I’d love to hear from you
this video I’d love to hear from you leave it in the comment section below or
leave it in the comment section below or
leave it in the comment section below or if you have a question about your
if you have a question about your
if you have a question about your business I always read those I really
business I always read those I really
business I always read those I really loved seeing the questions and comments
loved seeing the questions and comments
loved seeing the questions and comments come in every morning so thank you guys
come in every morning so thank you guys
come in every morning so thank you guys and I’ll see you on the next episode
”
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