Trump University Entrepreneurship 101: How to Turn Your Idea into a Money Machine, Second Edition

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TRUMP UNIVERSITY ENTREPRENEURSHIP 101

The process of raising money for your business is difficult and time-

consuming—especially for the first-time entrepreneur. The money hunt is

also confusing due to the maze of funding sources, most of which have spe-

cial requirements and terms. Without appropriate knowledge, you will be

ill-equipped to navigate the funding maze. To get through the difficulties

and confusion, let’s take it one manageable step at a time. The first step is to

understand your own business goals.

Clarify Your Business Goals

Look over the following four questions and craft a simple statement of your

business goals, encompassing the size, nature, growth rate, and harvest.

1. Do you want to grow a lifestyle business or a high-potential venture? Recall

from Chapter 6 that a lifestyle business can grow slowly, perhaps

from $100,000 to $1 million in sales, and will provide a nice lifestyle

for you, as your own boss. A high-potential venture has the capability

of growing rapidly, perhaps in excess of $10 million in sales in a 5- to

10-year time frame.

2. What is the nature of the company you wish to create: products or ser-

vices, marketing, sales, R&D, finance, virtual, international, manufac-

turing, distribution, retail, socially conscious, not-for-profit, others?

Every company has a basic nature.

3. How quickly do you want to grow? Building a business in one industry,

slowly, from profits? Rapidly, by taking in financing partners, by

establishing a network of franchisees, by establishing other company-

owned stores, through acquisitions or mergers?

4. What is the most likely harvest scenario for your business? Do you want to

grow your company and sell it quickly, within 5 to 10 years, or work

until retirement and turn it over to your children?

Your business goal statement will set the stage for finding and approach-

ing well-suited investors. There must be congruence between your goals and

those of the targeted funding source. By way of example, if you envision

growing a computer consulting company having sales of $500,000 in five

years, you would not approach a private investor who is interested in funding

a rapid-growth chain of specialty foods to leverage his expertise in restau-

rant franchising and distribution. In fact, if you do not envision selling your

company in the 5- to 10-year term, you would need to get quite creative to

provide a return on investment to any equity partner. The greater the clarity

of your business goals, the more likely is your chance of finding appropriate

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