if you’re just getting started in
business as an entrepreneur and you’re
looking at how do I get a loan for my
company then this video is for you
what’s that believe nation it’s Evan my
one word is believe and I believe in you
I want to see that crazy thing that
you’ve got inside to you this big idea
exploded on into the world so that you
can have a big impact for your friends
for your family for your community and
for the world one of the questions I get
asked a lot is how do I get a loan for
my business I’m just starting out how do
I get money to launch this big idea and
so in this video I’m gonna share with
you my seven ways to get a loan as a
start-up way number one is through banks
and banks are the typical place that
people think about I need a loan where
do I go I go to a bank challenge here
though I want to give you a quick caveat
because you need to know when you walked
into a bank banks are not super start-up
friendly banks exist not to give
high-risk loans out to startups and
startups are in the highest risk
category of any business and the
challenge you have is separating your
business from everybody else from the
ninety five percent of other companies
that are failing why are you gonna be
the one that succeeds and so banks
typically will not fund companies that
have less than three years of experience
and so this video is targeting towards
startups you don’t have four years of
experience three years of financials in
your company and so the chance of you
getting a loan just based off your
business is super low typically the only
way to get a loan from a bank as a
startup is based off your personal
credit so if you have crappy personal
credit you’re unlikely get the loan if
you have decent personal credit you’ve
been working towards building it up then
it’s a good change the bank will give
you a loan but again it’s personally
guaranteed so if something goes wrong
they’re taking your house or taking your
car they’re taking some of your assets
it’s not against the business as soon as
you can get to the point where any
financing is against the business that’s
where you want to be just in case
something goes wrong they’re not taking
your house away so since banks are not a
fantastic option for start-up
entrepreneurs let me give you six more
options on this list
number two was friends and family this
is kind of risky because you know your
business does not take off your friends
and family are on the hook and so that
might cause some anxious Christmas
dinners or Thanksgiving parties or
birthday events and one thing you want
to be really really clear on here is
thinking about the family member the
friend that you have are they going to
regret this for the rest of their life
or they’re gonna be on you the rest of
the life if it doesn’t work out being
super clear upfront that this is really
really risky in the example Jeff Bezos
when he was starting amazon.com he went
to his parents to get a loan for his
business look at the startup capital
thing to get going and he said there’s a
70% chance that I’m gonna fail which is
actually a lot lower than what the
actual chance is for most entrepreneurs
this is a 70% chance that you’re never
gonna see your money again are you okay
with that and they still gave him the
money to do it right and so having that
optimism that you want to be able to
build this big thing and you think
you’re gonna succeed but also having a
temper to let people know that they may
never see their money again and is that
okay because you don’t want to burn
relationships because of money it’s the
worst thing to be able to be in a fight
over and so typically that with a
startup company that’s where you get the
funding to go if you’re looking at
$50,000 under and it’s typically friends
and family it’s not typically from
bigger companies or investors or banks
is from friends and family and so it may
not be your closest friends and family
sometimes it’s the people in your
network it’s often called golf course
preferred money the idea here is you go
and you take your friends out or around
the golf and then you go to the
clubhouse and you talk about your
business you know doing some kind of
activity together and letting them know
what you’re up to reaching out to your
network beyond just your kind of
immediate family and letting them know
again there’s a big opportunity but
there’s also risks that they’ll notice
is that money again
number three is individual investors
typically we call these people angels
angels sometimes go on the debt side so
we’re talking about how to get a loan
not how to get an equity investment
angels will sometimes go on the debt
side where they’ll give you a loan and
this is typically where you you know
can’t go to the bank you can’t go
anywhere else and so you get a loan
you’re gonna likely expect a higher
interest rate because it’s riskier right
the riskier project is if everybody else
has turned you down it’s a higher risk
opportunity and so you’re gonna have to
pay a higher interest rate what I would
try to do if you’re reaching out to
individuals first of all how do you find
them usually soon your connections you
should still informal networks
most people don’t say hey I’m an angel
investor give me your pitches and
proposals because they’d be bombarded
with people so the way to get through is
typically through your lawyers through
accountant suit bookkeepers through
people who are dealing with these kinds
of people on a regular basis so first
step is talk to a lawyer talk to your
accountant talk to you look deeper if
you don’t have any of those lined up ask
your friends do you have a lawyer do you
ever count you have a bookkeeper that I
could talk to I want to talk to you
about my business and also potential
look at pitching some investors and the
more those kinds of people you could
talk to an investor likely isn’t going
to have a website to say pitching ideas
but they will listen to their lawyer or
their accountant or the bookkeeper who’s
giving them ideas and say this might be
a good fit next when you’re doing the
pitch also make sure that you’re getting
something more than money if I’m working
with an angel investor I want to work
with somebody who can potentially help
my business either through some advice
or some mentoring some connections sales
opening doors the money is great but you
want someone who can bring more than
just have initial phase of funding to
you
that’s called dumb money you want people
who are what they call smart money who’s
gonna be able to bring a lot more to
your business as well
we’re number four is government grants
this is not quite a loan sometimes it is
sometimes it’s not a hard core like
official grant is just you get money you
never have to pay back but a lot of
government programs also our loan base
where they pay either zero interest or a
really low rate of interest and a lot of
these government programs are based off
super specific criteria so if you’re a
woman entrepreneur these programs if
you’re a native entrepreneurs programs
if you’re African American you know
entrepreneur this programs if you’re a
young entrepreneur this program
depending on how you classify there’s
different programs it can also go by
industry so there’s those programs for
tech this there’s programs to retail
those programs are also two different
industries and one of the biggest
challenges is figuring out which
programs are available for meeting and
you can also have them at a city level
at a state of province level and at a
national level lots of different
programs in Canada we have a program is
in Toronto at least we have an
organization called Enterprise Toronto
that’s run by the government and part of
their role is to help kind of figure out
what programs you might be a good for
I’d highly recommend seeing what
government agency is in your local
community that might be able to help you
make that decision of to who to apply to
and what grant or loan might be the best
fit for you sometimes there are
restrictions on government programs so
as an example the government might fund
a program for you but you have to keep
your company and your technology in your
country for the next five years right
there with us we have a program in
Canada like that that if I did that it
would prevent me from selling my company
to an American company because the tech
has to stay here for at least five years
and so looking at what kind of
restrictions might come with it the
biggest downside about government
programs is it just takes a long for it
to happen you know entrepreneurs we want
things that happen ASAP right now
immediately we’re entrepreneurs we’re
impatient we want things to just motor
through and dealing with big
corporations and banks is painful and
slow enough a deal with the government
is a whole other beast it’s just such a
long waiting period that if you’re just
waiting for that that come through
nothing’s gonna happen your business so
I would recommend if you’re looking at
the government off
and the half that is an option pursue it
and at the same time start building up
whatever you can with your business so
that you’re not just waiting six months
or a year or some government check they
come in we number five is through
customers and this is one of my favorite
ways pre sell your product or your
service to potential customers this is
where services like Kickstarter come in
or if you’re just launching a website
and you’re promising a product and
you’re doing pre-orders for campaign a
buddy of mine is launching the new
clothing line and he has a mock-up or a
sample of one hoodie that he’s trying to
sell and he’s taking pre-orders to see
how many can he sell before he goes out
and buys it it’s fantastic because one
you’re not giving up any equity in your
business so you’re not losing a
percentage of your company – you’re not
taking out a typical loan where you have
to pay interest and principal back every
month and three you’re only actually
moving forward on your plan if you have
sales it’s no risk because you’re making
money before you’re spending money and
so whether you’re using a platform like
Kickstarter or whether you’re just using
your own network for your website of
your social media whatever idea you have
I would try to just put together a
presentation a mock-up a sample a demo
and then go out and try to get orders
for it don’t say that it’s available yet
don’t say like hey I’m gonna take this
order and it’s for sure gonna happen
you say this is pre-orders we need to
hit a thousand units or ten units or
whatever your number is gonna be and if
we hit that then we’re gonna make them
and tying your customers into your goal
is a great strategy because if they know
you need to sell a hundred for this to
be made maybe they tell their friends
about it maybe they buy an extra one or
two maybe they post it to the social
media account because they really want
to get that product and if they know
that if you can’t get to a hundred
you’re not gonna make it and so getting
that money up front on your customers is
from this list my favorite way to be
able upon you your business
okay we number six is from your job you
know jobs suck but the reason to have a
job is to be able to learn and to be
able to understand how the industry
works we will make some contacts and
there’s two ways to get funded from your
job one is you just use your salary that
you’re making that hopefully can you
could put aside some money every month
so that’s not all going towards paying
off your bills and you just living
paycheck to paycheck and that may mean
living below your means for a while to
get the money to do what you want to do
some people use it as an opportunity to
start becoming an entrepreneur by
leaving their job leaving being an
employee and then contracting your
services back to the same company they
were working for so whatever you’re
doing at the company the job that you’re
you’re currently working at now go and
talk to the boss and say listen I would
love to be a continuous part of your
company I want to keep adding value to
what you’re doing can we make it that
I’m a contractor for you instead of an
employee and maybe then you reduce your
number of hours maybe you go from five
visit with the four days a week or
slowly that evolves over time as a
contractor as an entrepreneur you get to
take home a lot more money because you
can write off a lot more things as part
of your business you’re not spending
after-tax dollars on everything and that
can help fund the next evolution of your
company the other thing you can do with
the job is try to look for opportunities
to create a business so are any of the
customers that you’re working with
potential customers for your new company
or any the people on your team people
that you can work with on your new
business so don’t go to a job just to
collect the paycheck and hate your life
you go to a job to learn to mentor to
grow to make connections to potentially
sell your services to and that becomes a
little incubation for your next business
anyway number seven is Swiss suppliers
this is a more innovative strategy to be
able to get your company off the ground
but think about where you’re gonna be
spending your money so you need X amount
of dollars about your business right you
need whatever it is $10,000 $25,000
where are you gonna spend that money who
are you going to be spending it with and
then go have a conversation with those
people to see if it’s something that you
can work out if they really believe in
your mission your vision your plan that
this is going to work out that you’re
gonna grow with them you’re gonna give
them referrals you’re gonna increase the
business that you do with them they may
be able to give you credit they maybe
will say okay you know what we will give
you your first 500 hoodies go and sell
those we’ll give you those on credit
then come back and pay us and so it
doesn’t always have to be from friends
or family or government or banks or jobs
or customers could also come from the
supplier side if you can strike up some
interesting unique ways to be able to
get the products or service that you
need up front in advance on credit and
then go out in the suburbs and sales so
that’s what I got those are my seven
ways to get a loan as a start-up I want
to thank mode Abu self for given that
recommendation and there’s a topic you
want me to cover in another seven ways
video check out the link in description
you can go and cast your vote I love to
know from the seven which one was your
favorite which one are you going to
apply immediately to your business and
is there an 8 9 10 that you want to add
to the list share it down the comments
below really excited to see what you
have to say thank you guys again for
watching I believe in you
hoping continue to believe in yourself
and whatever your one word is much love
guys see you soon raise your standard
Apple at the core its core value is that
passion not one drop of most self-worth
depends on your acceptance of me I don’t
ever give up I’d have to be
dead or completely incapacitated hey
believe nation if you want to see my
all-time favorite top ten roses success
I have a very special secret video for
you these are the individual Clips that
I have personally learned the most from
and applied to my life and my business
check the link in description for
details
business as an entrepreneur and you’re
looking at how do I get a loan for my
company then this video is for you
what’s that believe nation it’s Evan my
one word is believe and I believe in you
I want to see that crazy thing that
you’ve got inside to you this big idea
exploded on into the world so that you
can have a big impact for your friends
for your family for your community and
for the world one of the questions I get
asked a lot is how do I get a loan for
my business I’m just starting out how do
I get money to launch this big idea and
so in this video I’m gonna share with
you my seven ways to get a loan as a
start-up way number one is through banks
and banks are the typical place that
people think about I need a loan where
do I go I go to a bank challenge here
though I want to give you a quick caveat
because you need to know when you walked
into a bank banks are not super start-up
friendly banks exist not to give
high-risk loans out to startups and
startups are in the highest risk
category of any business and the
challenge you have is separating your
business from everybody else from the
ninety five percent of other companies
that are failing why are you gonna be
the one that succeeds and so banks
typically will not fund companies that
have less than three years of experience
and so this video is targeting towards
startups you don’t have four years of
experience three years of financials in
your company and so the chance of you
getting a loan just based off your
business is super low typically the only
way to get a loan from a bank as a
startup is based off your personal
credit so if you have crappy personal
credit you’re unlikely get the loan if
you have decent personal credit you’ve
been working towards building it up then
it’s a good change the bank will give
you a loan but again it’s personally
guaranteed so if something goes wrong
they’re taking your house or taking your
car they’re taking some of your assets
it’s not against the business as soon as
you can get to the point where any
financing is against the business that’s
where you want to be just in case
something goes wrong they’re not taking
your house away so since banks are not a
fantastic option for start-up
entrepreneurs let me give you six more
options on this list
number two was friends and family this
is kind of risky because you know your
business does not take off your friends
and family are on the hook and so that
might cause some anxious Christmas
dinners or Thanksgiving parties or
birthday events and one thing you want
to be really really clear on here is
thinking about the family member the
friend that you have are they going to
regret this for the rest of their life
or they’re gonna be on you the rest of
the life if it doesn’t work out being
super clear upfront that this is really
really risky in the example Jeff Bezos
when he was starting amazon.com he went
to his parents to get a loan for his
business look at the startup capital
thing to get going and he said there’s a
70% chance that I’m gonna fail which is
actually a lot lower than what the
actual chance is for most entrepreneurs
this is a 70% chance that you’re never
gonna see your money again are you okay
with that and they still gave him the
money to do it right and so having that
optimism that you want to be able to
build this big thing and you think
you’re gonna succeed but also having a
temper to let people know that they may
never see their money again and is that
okay because you don’t want to burn
relationships because of money it’s the
worst thing to be able to be in a fight
over and so typically that with a
startup company that’s where you get the
funding to go if you’re looking at
$50,000 under and it’s typically friends
and family it’s not typically from
bigger companies or investors or banks
is from friends and family and so it may
not be your closest friends and family
sometimes it’s the people in your
network it’s often called golf course
preferred money the idea here is you go
and you take your friends out or around
the golf and then you go to the
clubhouse and you talk about your
business you know doing some kind of
activity together and letting them know
what you’re up to reaching out to your
network beyond just your kind of
immediate family and letting them know
again there’s a big opportunity but
there’s also risks that they’ll notice
is that money again
number three is individual investors
typically we call these people angels
angels sometimes go on the debt side so
we’re talking about how to get a loan
not how to get an equity investment
angels will sometimes go on the debt
side where they’ll give you a loan and
this is typically where you you know
can’t go to the bank you can’t go
anywhere else and so you get a loan
you’re gonna likely expect a higher
interest rate because it’s riskier right
the riskier project is if everybody else
has turned you down it’s a higher risk
opportunity and so you’re gonna have to
pay a higher interest rate what I would
try to do if you’re reaching out to
individuals first of all how do you find
them usually soon your connections you
should still informal networks
most people don’t say hey I’m an angel
investor give me your pitches and
proposals because they’d be bombarded
with people so the way to get through is
typically through your lawyers through
accountant suit bookkeepers through
people who are dealing with these kinds
of people on a regular basis so first
step is talk to a lawyer talk to your
accountant talk to you look deeper if
you don’t have any of those lined up ask
your friends do you have a lawyer do you
ever count you have a bookkeeper that I
could talk to I want to talk to you
about my business and also potential
look at pitching some investors and the
more those kinds of people you could
talk to an investor likely isn’t going
to have a website to say pitching ideas
but they will listen to their lawyer or
their accountant or the bookkeeper who’s
giving them ideas and say this might be
a good fit next when you’re doing the
pitch also make sure that you’re getting
something more than money if I’m working
with an angel investor I want to work
with somebody who can potentially help
my business either through some advice
or some mentoring some connections sales
opening doors the money is great but you
want someone who can bring more than
just have initial phase of funding to
you
that’s called dumb money you want people
who are what they call smart money who’s
gonna be able to bring a lot more to
your business as well
we’re number four is government grants
this is not quite a loan sometimes it is
sometimes it’s not a hard core like
official grant is just you get money you
never have to pay back but a lot of
government programs also our loan base
where they pay either zero interest or a
really low rate of interest and a lot of
these government programs are based off
super specific criteria so if you’re a
woman entrepreneur these programs if
you’re a native entrepreneurs programs
if you’re African American you know
entrepreneur this programs if you’re a
young entrepreneur this program
depending on how you classify there’s
different programs it can also go by
industry so there’s those programs for
tech this there’s programs to retail
those programs are also two different
industries and one of the biggest
challenges is figuring out which
programs are available for meeting and
you can also have them at a city level
at a state of province level and at a
national level lots of different
programs in Canada we have a program is
in Toronto at least we have an
organization called Enterprise Toronto
that’s run by the government and part of
their role is to help kind of figure out
what programs you might be a good for
I’d highly recommend seeing what
government agency is in your local
community that might be able to help you
make that decision of to who to apply to
and what grant or loan might be the best
fit for you sometimes there are
restrictions on government programs so
as an example the government might fund
a program for you but you have to keep
your company and your technology in your
country for the next five years right
there with us we have a program in
Canada like that that if I did that it
would prevent me from selling my company
to an American company because the tech
has to stay here for at least five years
and so looking at what kind of
restrictions might come with it the
biggest downside about government
programs is it just takes a long for it
to happen you know entrepreneurs we want
things that happen ASAP right now
immediately we’re entrepreneurs we’re
impatient we want things to just motor
through and dealing with big
corporations and banks is painful and
slow enough a deal with the government
is a whole other beast it’s just such a
long waiting period that if you’re just
waiting for that that come through
nothing’s gonna happen your business so
I would recommend if you’re looking at
the government off
and the half that is an option pursue it
and at the same time start building up
whatever you can with your business so
that you’re not just waiting six months
or a year or some government check they
come in we number five is through
customers and this is one of my favorite
ways pre sell your product or your
service to potential customers this is
where services like Kickstarter come in
or if you’re just launching a website
and you’re promising a product and
you’re doing pre-orders for campaign a
buddy of mine is launching the new
clothing line and he has a mock-up or a
sample of one hoodie that he’s trying to
sell and he’s taking pre-orders to see
how many can he sell before he goes out
and buys it it’s fantastic because one
you’re not giving up any equity in your
business so you’re not losing a
percentage of your company – you’re not
taking out a typical loan where you have
to pay interest and principal back every
month and three you’re only actually
moving forward on your plan if you have
sales it’s no risk because you’re making
money before you’re spending money and
so whether you’re using a platform like
Kickstarter or whether you’re just using
your own network for your website of
your social media whatever idea you have
I would try to just put together a
presentation a mock-up a sample a demo
and then go out and try to get orders
for it don’t say that it’s available yet
don’t say like hey I’m gonna take this
order and it’s for sure gonna happen
you say this is pre-orders we need to
hit a thousand units or ten units or
whatever your number is gonna be and if
we hit that then we’re gonna make them
and tying your customers into your goal
is a great strategy because if they know
you need to sell a hundred for this to
be made maybe they tell their friends
about it maybe they buy an extra one or
two maybe they post it to the social
media account because they really want
to get that product and if they know
that if you can’t get to a hundred
you’re not gonna make it and so getting
that money up front on your customers is
from this list my favorite way to be
able upon you your business
okay we number six is from your job you
know jobs suck but the reason to have a
job is to be able to learn and to be
able to understand how the industry
works we will make some contacts and
there’s two ways to get funded from your
job one is you just use your salary that
you’re making that hopefully can you
could put aside some money every month
so that’s not all going towards paying
off your bills and you just living
paycheck to paycheck and that may mean
living below your means for a while to
get the money to do what you want to do
some people use it as an opportunity to
start becoming an entrepreneur by
leaving their job leaving being an
employee and then contracting your
services back to the same company they
were working for so whatever you’re
doing at the company the job that you’re
you’re currently working at now go and
talk to the boss and say listen I would
love to be a continuous part of your
company I want to keep adding value to
what you’re doing can we make it that
I’m a contractor for you instead of an
employee and maybe then you reduce your
number of hours maybe you go from five
visit with the four days a week or
slowly that evolves over time as a
contractor as an entrepreneur you get to
take home a lot more money because you
can write off a lot more things as part
of your business you’re not spending
after-tax dollars on everything and that
can help fund the next evolution of your
company the other thing you can do with
the job is try to look for opportunities
to create a business so are any of the
customers that you’re working with
potential customers for your new company
or any the people on your team people
that you can work with on your new
business so don’t go to a job just to
collect the paycheck and hate your life
you go to a job to learn to mentor to
grow to make connections to potentially
sell your services to and that becomes a
little incubation for your next business
anyway number seven is Swiss suppliers
this is a more innovative strategy to be
able to get your company off the ground
but think about where you’re gonna be
spending your money so you need X amount
of dollars about your business right you
need whatever it is $10,000 $25,000
where are you gonna spend that money who
are you going to be spending it with and
then go have a conversation with those
people to see if it’s something that you
can work out if they really believe in
your mission your vision your plan that
this is going to work out that you’re
gonna grow with them you’re gonna give
them referrals you’re gonna increase the
business that you do with them they may
be able to give you credit they maybe
will say okay you know what we will give
you your first 500 hoodies go and sell
those we’ll give you those on credit
then come back and pay us and so it
doesn’t always have to be from friends
or family or government or banks or jobs
or customers could also come from the
supplier side if you can strike up some
interesting unique ways to be able to
get the products or service that you
need up front in advance on credit and
then go out in the suburbs and sales so
that’s what I got those are my seven
ways to get a loan as a start-up I want
to thank mode Abu self for given that
recommendation and there’s a topic you
want me to cover in another seven ways
video check out the link in description
you can go and cast your vote I love to
know from the seven which one was your
favorite which one are you going to
apply immediately to your business and
is there an 8 9 10 that you want to add
to the list share it down the comments
below really excited to see what you
have to say thank you guys again for
watching I believe in you
hoping continue to believe in yourself
and whatever your one word is much love
guys see you soon raise your standard
Apple at the core its core value is that
passion not one drop of most self-worth
depends on your acceptance of me I don’t
ever give up I’d have to be
dead or completely incapacitated hey
believe nation if you want to see my
all-time favorite top ten roses success
I have a very special secret video for
you these are the individual Clips that
I have personally learned the most from
and applied to my life and my business
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