Chapter 2
Finding the Funding
IN THIS CHAPTER
Making a money plan
Using your own money first
Looking for an angel this side of heaven
Using venture capital
Selling stock through an IPO and finding other sources of capital
Protecting your business plan
Two common attitudes about start-up funds make the search for funds much more difficult. They are
- The more money I get, the better. I can use as much as I can get.
- My business plan numbers are just estimates — the investor will tell me what I need.
If you’re thinking like this, stop right now. First of all, why seek more investment money than you absolutely need? Every bit of capital invested in your business costs you some equity (ownership) in your company. Besides, having too much money may lead you to make poor decisions because you don’t think as carefully as you should about how you spend that money.
Secondly, although it’s ...
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