How Much Money Do I Need to Fund My Business?

Different businesses have different cash needs, of course.

But here’s a guideline:
Use credit to fund the buildout of the business (ex. $10,000 in credit)
Minimum: $5000
Preferably: $10,000

Options for funding:

  • Outside Inventors
  • Other Entrepreneurs
  • Credit Lines
  • Sell your way through it
  • If no qualified investors want to be a part of what you are doing, you’re either in the wrong business,
  • or not far enough along in the process

The Multiplier Approach: Good Debt
Credit: $10,000
Rate: 20%
Payment $926.35 / Month for 12 months
Your Job: Make an extra to fund the build out of your business $926.35 per month

The Pre Selling Approach

You don’t actually have to have inventory on hand to start selling your product. Many of our students pre
sell their product to finance its production. This can play out one of three ways:
You make lots of sales. Then pay for your inventory to fulfill those orders. Bonus points if you make
enough to cover your next production run.
You make no sales. It turns out that nobody wants to buy your product (highly unlikely, because you’ve
gone through the process you learned in this course). You saved yourself a ton of money and time.
3 You make some sales, but not enough to justify moving forward with this product. Simply refund the
customers who bought in the presale, evaluate where this idea missed the mark, and make decisions
from there.
Where can you take presales?
Crowdfunding sites like Kickstarter, Republic, and Indiegogo
By building a highly engaged audience (or partnering with an audience leader), you can presell to them.
Funding with Advertising and Affiliates
Sponsorships – Sell shout outs, video reviews, advertising, and affiliate sales
Blue Collar Brokering – partnering influencers and product owners
If you have a blog that serves your market, write reviews of other products to get traffic and sales
flowing toward you
Could you sell advertising in your product? Advertising space on your blog or website?
Hustling and Services
What is your single greatest skill that is valuable to someone else?
Who is willing to pay the most for that skill?
People need content & ad writers, customer service reps, affiliates, exposure, relationships, web help, etc.….
Can you take on one side client to pay for the buildout of your business?

(Free) Start your own business with these 3 low-cost ideas!

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