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You have marketing to attract new customers towards your product or service.
You have sales to be able to exchange their hard earned cash for your product or service.
And ultimately you need to be able to fulfill the promise through your product or service.
These 3 components are simple enough to learn.
Market it, sell it, and build it.
And if you have some profit left to continue this process, congrats, you are in business.
So why isn’t everyone rushing to become an entrepreneur if it’s that simple?
Well, you see there’s a bit of a problem for most entrepreneurs.
Let’s get back to the 3 components:
in order to do a successful marketing campaign you need traffic, also known as eyeballs. This isn’t free. You need to either be willing to pay for ads, pay for an influencer to shout you out, or build an audience over time, and time is money.
If you can sell that’s fantastic, you’re an asset for your own business. But what happens when you fill your own calendar with meetings? You become capped, you can’t grow any further. Which means you need to invest money into hiring others. If you can’t sell, you need to hire from the beginning.
You could be fulfilling yourself, if you’re a freelancer, but then who’s selling for you? Can you do both and grow a multimillion dollar business? Chances are the answer to that is no. You will need to hire additional people in order to grow your business.
“I don’t sell a service, I sell a product”
Great, how are you going to improve it, build features, support your existing customers?
The problem is very clear when you do the math.
You need MONEY in order to scale a business.
But don’t worry there’s a few ways to get this money.
In fact, you will learn in a few minutes how you can use one of these ways to make top dollars yourself.
So here are the ways entrepreneurs fund their businesses:
The founder funds it themselves using their own hard-earned money. The problem here is clear, you will risk a lot if you don’t have a lot of money to start with. And you are limited to the size of your bank account.
Friends, Family and Fools
This one is funny, collect small investments from friends and family or anyone foolish enough to risk their money, or at least that’s how the joke goes. Risks? Broken relationships if things don’t pan out.
You get to keep 100% ownership of your company with this one, but what happens when the interest starts to add up? Plus banks hate lending money to startups.
Angel Investors & Venture Capital (VCs)
These are my favorite for a couple of reasons.
1) They invest in exchange for equity, which means that they will own a piece of the company. That makes them have skin in the game, so they will happily share resources beyond money with the founder.
2) They can invest A LOT and bring others who will invest even more.
In fact, we recently reached out ourselves to VCs and managed to raise 7 figures for a project in the idea phase in just 6 weeks.
It’s super easy to get investors to respond if you know what you’re doing.
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