next question comes in from salvador he has a clothing company it’s one years
has a clothing company it’s one years
has a clothing company it’s one years old if he’s going for an investor how
old if he’s going for an investor how
old if he’s going for an investor how much money do you think I should ask for
much money do you think I should ask for
much money do you think I should ask for so that’s a pretty generic question but
so that’s a pretty generic question but
so that’s a pretty generic question but how do you how do you address how much
how do you how do you address how much
how do you how do you address how much money you should ask for any point in
money you should ask for any point in
money you should ask for any point in time in your business yeah I think hey
time in your business yeah I think hey
time in your business yeah I think hey so do you need to almost turn the
so do you need to almost turn the
so do you need to almost turn the question around and say how much do I
question around and say how much do I
question around and say how much do I need to fuel the growth so again you
need to fuel the growth so again you
need to fuel the growth so again you don’t need to you never go to harbor and
don’t need to you never go to harbor and
don’t need to you never go to harbor and they you you you know your business you
they you you you know your business you
they you you you know your business you know your customers you could put a
know your customers you could put a
know your customers you could put a projection around how you could grow
projection around how you could grow
projection around how you could grow your business and then what you need to
your business and then what you need to
your business and then what you need to take on extra employees or to service
take on extra employees or to service
take on extra employees or to service them or sales or marketing and this
them or sales or marketing and this
them or sales or marketing and this little functions you need to keep
little functions you need to keep
little functions you need to keep customers delight customers and grow as
customers delight customers and grow as
customers delight customers and grow as a sustainable business model and then
a sustainable business model and then
a sustainable business model and then once you do that is kind of work
once you do that is kind of work
once you do that is kind of work backwards about over the next year what
backwards about over the next year what
backwards about over the next year what do I need to fund that growth look here
do I need to fund that growth look here
do I need to fund that growth look here your cash balance look at all the
your cash balance look at all the
your cash balance look at all the obvious things about when you’ve got
obvious things about when you’ve got
obvious things about when you’ve got revolving credit a lot of businesses
revolving credit a lot of businesses
revolving credit a lot of businesses probably at that stage is still using
probably at that stage is still using
probably at that stage is still using the credit card to fund some of their
the credit card to fund some of their
the credit card to fund some of their growth as well and then think you know
growth as well and then think you know
growth as well and then think you know have a really rock solid plan over the
have a really rock solid plan over the
have a really rock solid plan over the next year 18 months this is the best
next year 18 months this is the best
next year 18 months this is the best case if I accelerate it to a sort of
case if I accelerate it to a sort of
case if I accelerate it to a sort of stretch plan back to Evans point could I
stretch plan back to Evans point could I
stretch plan back to Evans point could I go back and say have an option with an
go back and say have an option with an
go back and say have an option with an investor to really kind of ramp it up
investor to really kind of ramp it up
investor to really kind of ramp it up and grow faster so I think the key
and grow faster so I think the key
and grow faster so I think the key question here is it’s not how much money
question here is it’s not how much money
question here is it’s not how much money to own race is what is the business plan
to own race is what is the business plan
to own race is what is the business plan to grow responsibly and sustainably but
to grow responsibly and sustainably but
to grow responsibly and sustainably but as fast as you can to execute them the
as fast as you can to execute them the
as fast as you can to execute them the opportunity and then work backwards to
opportunity and then work backwards to
opportunity and then work backwards to look at the funding requires yeah i
look at the funding requires yeah i
look at the funding requires yeah i agree i like looking at here here’s
agree i like looking at here here’s
agree i like looking at here here’s where we want to go in the next year and
where we want to go in the next year and
where we want to go in the next year and how do we fund that before we’re in
how do we fund that before we’re in
how do we fund that before we’re in about how do we fund the next ten years
about how do we fund the next ten years
about how do we fund the next ten years who’s got to actually execute your one
who’s got to actually execute your one
who’s got to actually execute your one year plan first and if you do that right
year plan first and if you do that right
year plan first and if you do that right it’ll be way easier to raise for what
it’ll be way easier to raise for what
it’ll be way easier to raise for what you’re gonna be doing on going i would
you’re gonna be doing on going i would
you’re gonna be doing on going i would add to that when you are talking to an
add to that when you are talking to an
add to that when you are talking to an investor you need to have absolute
investor you need to have absolute
investor you need to have absolute clarity over how much you need and what
clarity over how much you need and what
clarity over how much you need and what it’s going to be invested into because
it’s going to be invested into because
it’s going to be invested into because if there’s
if there’s
if there’s any hesitation if there’s any doubt then
any hesitation if there’s any doubt then
any hesitation if there’s any doubt then you’re gonna make the investor scared
you’re gonna make the investor scared
you’re gonna make the investor scared they’re going to be spooked and they’re
they’re going to be spooked and they’re
they’re going to be spooked and they’re going to not want to invest in you so
going to not want to invest in you so
going to not want to invest in you so you have to have absolute clarity you
you have to have absolute clarity you
you have to have absolute clarity you have to know exactly where you’re going
have to know exactly where you’re going
have to know exactly where you’re going to be spending that money and the
to be spending that money and the
to be spending that money and the sequins point you make your plan one
sequins point you make your plan one
sequins point you make your plan one year here’s what we wanted what we want
year here’s what we wanted what we want
year here’s what we wanted what we want to do is where we’re going to go and
to do is where we’re going to go and
to do is where we’re going to go and then in your projections here’s what
then in your projections here’s what
then in your projections here’s what will often happen an investor at least
will often happen an investor at least
will often happen an investor at least in the VC world will look at the
in the VC world will look at the
in the VC world will look at the executive summary of your business plan
executive summary of your business plan
executive summary of your business plan then we’ll look at who is part of this
then we’ll look at who is part of this
then we’ll look at who is part of this deal like the horse for the course they
deal like the horse for the course they
deal like the horse for the course they call it right who is the jockey who’s
call it right who is the jockey who’s
call it right who is the jockey who’s the team and then we look at the
the team and then we look at the
the team and then we look at the financials do the financials make sense
financials do the financials make sense
financials do the financials make sense you know here’s where you want to be and
you know here’s where you want to be and
you know here’s where you want to be and you have to be able to explain every
you have to be able to explain every
you have to be able to explain every single number in your financial
single number in your financial
single number in your financial statement why it’s there and if you
statement why it’s there and if you
statement why it’s there and if you can’t then it’s going to be really hard
can’t then it’s going to be really hard
can’t then it’s going to be really hard to convince an investor to want to come
to convince an investor to want to come
to convince an investor to want to come on board with you yeah t think evidence
on board with you yeah t think evidence
on board with you yeah t think evidence you’ve got to know where you’re going to
you’ve got to know where you’re going to
you’ve got to know where you’re going to invest it so no better on the management
invest it so no better on the management
invest it so no better on the management team and the longer you’ve executed
team and the longer you’ve executed
team and the longer you’ve executed successfully the more back in you’ll get
successfully the more back in you’ll get
successfully the more back in you’ll get but you’ve got to know how you invest it
but you’ve got to know how you invest it
but you’ve got to know how you invest it because I’ve seen companies even when
because I’ve seen companies even when
because I’ve seen companies even when they get to like 15-20 people they go
they get to like 15-20 people they go
they get to like 15-20 people they go and raise a load of money and all the
and raise a load of money and all the
and raise a load of money and all the stuff the bear behavior kicks in like
stuff the bear behavior kicks in like
stuff the bear behavior kicks in like they design a new logo and you brand and
they design a new logo and you brand and
they design a new logo and you brand and stuff and start travelling first class
stuff and start travelling first class
stuff and start travelling first class and all the kind of nonsense that i
and all the kind of nonsense that i
and all the kind of nonsense that i would say waste money rather than
would say waste money rather than
would say waste money rather than focused on the mission of driving body
focused on the mission of driving body
focused on the mission of driving body for customers and grow your business
for customers and grow your business
for customers and grow your business yeah and you know the other thing to
yeah and you know the other thing to
yeah and you know the other thing to keep in mind there for those you
keep in mind there for those you
keep in mind there for those you watching is raising money can become a
watching is raising money can become a
watching is raising money can become a full-time job which means you are not
full-time job which means you are not
full-time job which means you are not spending time executing on your business
spending time executing on your business
spending time executing on your business yeah and so you can often a for that if
yeah and so you can often a for that if
yeah and so you can often a for that if you’re a social entrepreneur and no
you’re a social entrepreneur and no
you’re a social entrepreneur and no investor wants to put money into a
investor wants to put money into a
investor wants to put money into a company that isn’t gaining traction
company that isn’t gaining traction
company that isn’t gaining traction momentum and so if you can focus on
momentum and so if you can focus on
momentum and so if you can focus on executing and getting some results over
executing and getting some results over
executing and getting some results over the next 6-12 months that’ll give you a
the next 6-12 months that’ll give you a
the next 6-12 months that’ll give you a lot of ammunition to go talk to
lot of ammunition to go talk to
lot of ammunition to go talk to investors with
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