hey it’s seven if you’re thinking about
taking on invested for your business
make sure that you’re not too early
stage 4 is that there’s a number of
different reasons for and this came out
of a discussion with a buddy of mine is
looking at potentially raising capital
and bringing on an angel investor
there’s a couple problems okay first off
if you go in too soon if you go into
early they’re going to kill you on your
valuation yeah you’re gonna you’re not
going to be able to get the value that
you want from your business second thing
is it is almost a full time job raising
money so you have to factor that in
you’re not going to be spending time
running your business you’re not gonna
be spending that time raising money
you’re now bringing on a partner who
hopefully you can work with but you
don’t know the best way to raise money
is expansion capital you find a way to
make things work on a small scale and
then expand it out because you know it’s
going to work you’re going to get the
best valuation and your chance of
success skyrocket if you bring on money
too early then you have to go out and
you have to first run on a new partner
with your investor then you have to go
out and hire a team so maybe you hire a
sales person maybe you hire an admin
person maybe hire a marketing person you
hire some production assistants whatever
it is you gotta hire a team have you
ever had success in hiring a team before
have you ever hired a sales person
before how do you know what to do to
make it right if you’ve never done it
before if you’ve never had success
hiring a sales person for example how do
you think you’re going to have success
hiring five people at the same time and
bringing on an angel investor partner
there’s a chance it could work and if it
works and everybody does their job then
you could hit the moon and that’s great
but there’s a huge chance that it’s
going to crash and burn and I don’t want
that for my friend and I don’t want that
for you if you’re in the same situation
get some experience build things up it’s
okay to bootstrap it’s okay to be small
to start you have a big dream show that
it works on a small scale and then take
money on to expand
those are the companies that have the
greatest success runners in the PC world
I rejected ninety-nine point nine
percent of the business plans that came
in because they were too early stage the
worst case scenario here is it doesn’t
work out right so he takes on the money
loses a portion of his company see he
gives up thirty percent of the business
he has to fire his team he’s back to
what he was doing before the challenge
here is now you have a minority
shareholder who is not so friendly
probably towards it because you’ve just
blown all his money who could buy you
out through a shotgun agreement and
you’ve lost your company or if you ever
try to go and raise more money nobody’s
going to want to support you because you
have a 30-percent shareholder who’s
doing nothing for your company and now
you’re deluded to seventy percent and
for any other investor to come in
they’re going to be worried that you’re
going to get diluted so much that it’s
not going to worth your time anymore if
you only only five percent of your
business are you still going to bust
everything out to make it work probably
not that’s a big fear I know investor
wants to come out to buy another
investor so if you make the wrong
decision with your first investor who’s
taking a sizeable chunk of your business
that could be the end of your business
if it doesn’t work out so make sure you
make the right decision don’t just jump
into it my advice is still prove it on a
small scale show that it works have
success in your and faith in yourself
that you know how to bring on a sales
person you know how to bring on an admit
person you know what to look for now
you’re ready to grow you’ve built it in
your city in your you know state or
province it works you may not make a lot
of money yet but it works now you have
your model to explode and take over the
world don’t take on money too soon
because it can tear your company apart
believe
for those of you watching like the video
please give it a thumbs up below and I
want to hear you have to think you have
a comment please leave a comment section
underneath you have a question for your
business leave it below on Mike a video
reply thank you guys I see you soon
taking on invested for your business
make sure that you’re not too early
stage 4 is that there’s a number of
different reasons for and this came out
of a discussion with a buddy of mine is
looking at potentially raising capital
and bringing on an angel investor
there’s a couple problems okay first off
if you go in too soon if you go into
early they’re going to kill you on your
valuation yeah you’re gonna you’re not
going to be able to get the value that
you want from your business second thing
is it is almost a full time job raising
money so you have to factor that in
you’re not going to be spending time
running your business you’re not gonna
be spending that time raising money
you’re now bringing on a partner who
hopefully you can work with but you
don’t know the best way to raise money
is expansion capital you find a way to
make things work on a small scale and
then expand it out because you know it’s
going to work you’re going to get the
best valuation and your chance of
success skyrocket if you bring on money
too early then you have to go out and
you have to first run on a new partner
with your investor then you have to go
out and hire a team so maybe you hire a
sales person maybe you hire an admin
person maybe hire a marketing person you
hire some production assistants whatever
it is you gotta hire a team have you
ever had success in hiring a team before
have you ever hired a sales person
before how do you know what to do to
make it right if you’ve never done it
before if you’ve never had success
hiring a sales person for example how do
you think you’re going to have success
hiring five people at the same time and
bringing on an angel investor partner
there’s a chance it could work and if it
works and everybody does their job then
you could hit the moon and that’s great
but there’s a huge chance that it’s
going to crash and burn and I don’t want
that for my friend and I don’t want that
for you if you’re in the same situation
get some experience build things up it’s
okay to bootstrap it’s okay to be small
to start you have a big dream show that
it works on a small scale and then take
money on to expand
those are the companies that have the
greatest success runners in the PC world
I rejected ninety-nine point nine
percent of the business plans that came
in because they were too early stage the
worst case scenario here is it doesn’t
work out right so he takes on the money
loses a portion of his company see he
gives up thirty percent of the business
he has to fire his team he’s back to
what he was doing before the challenge
here is now you have a minority
shareholder who is not so friendly
probably towards it because you’ve just
blown all his money who could buy you
out through a shotgun agreement and
you’ve lost your company or if you ever
try to go and raise more money nobody’s
going to want to support you because you
have a 30-percent shareholder who’s
doing nothing for your company and now
you’re deluded to seventy percent and
for any other investor to come in
they’re going to be worried that you’re
going to get diluted so much that it’s
not going to worth your time anymore if
you only only five percent of your
business are you still going to bust
everything out to make it work probably
not that’s a big fear I know investor
wants to come out to buy another
investor so if you make the wrong
decision with your first investor who’s
taking a sizeable chunk of your business
that could be the end of your business
if it doesn’t work out so make sure you
make the right decision don’t just jump
into it my advice is still prove it on a
small scale show that it works have
success in your and faith in yourself
that you know how to bring on a sales
person you know how to bring on an admit
person you know what to look for now
you’re ready to grow you’ve built it in
your city in your you know state or
province it works you may not make a lot
of money yet but it works now you have
your model to explode and take over the
world don’t take on money too soon
because it can tear your company apart
believe
for those of you watching like the video
please give it a thumbs up below and I
want to hear you have to think you have
a comment please leave a comment section
underneath you have a question for your
business leave it below on Mike a video
reply thank you guys I see you soon
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