Funding Your Business
Lesson 10 from: FAST CLASS: Turn Your Talent Into a Business in 12 StepsBeate Chelette
Funding Your Business
Lesson 10 from: FAST CLASS: Turn Your Talent Into a Business in 12 StepsBeate Chelette
Lessons
Class Introduction - Turn Your Talent in to Business
06:45 2Creating your Vision Statement
02:58 3Creating Your Mission Statement
02:44 4Types of Businesses
04:29 5What To Do with Your Idea
01:20 6Test Your Awesome Idea
09:31 7Competitive Research & Testing
06:21 8Creating Revenue Streams
02:17What’s Your Number?
06:23 10Funding Your Business
06:14 11Creating Customer Profiles
01:54 12Human Capital
02:17 13Organizational Structure
01:09 14Financial Responsibilities
02:32 15Legal Responsibilities
00:59 16Long-Term Growth Strategies
05:39 17Using Automation
01:28 18Your Creative Business Plan
01:47 19The Power of Your Story
01:20 20How To Make Money
01:43 21Marketing Strategies
00:25 22The Non-Sleazy Elevator Pitch
02:51 23Marketing Tips You Need To Know
03:43 24Thinking in the Long-Term
04:46 25Capturing Clients & Where To Start
03:13Lesson Info
Funding Your Business
Let's talk about the different types of funding available. So there's, um, venture capital crowdfunding like Kickstarter a Go Fund me Angel Investors Banks. The cool thing about Banks is that right now we're estimating that there are $3 trillion waiting to be loaned again because when the economy went down the drain, the banks just weren't lending anymore. So this money, this cash is sitting there ready to be handed out in business loans when the bank's at some unknown criteria at some unknown moment in time, when something unknown happens that finally start lending again, that's a lot of money becoming available. There's gonna be microloans and small business loans and all kinds of stuff. There's, of course, family and friends, not my favorite. And there's bootstrapping, which is basically using your mice. Let me just go through those. Let's start with Angel Investors so angel investors that its and called an angel for a reason. So an angel investor comes in and they just love you. Th...
ey love you idea. I could imagine that somebody from Russia that's been here, who's gone through, you know, making his American or her American dream happen the hard way sees you and you enthusiasm about helping the community. Who says You know what? I'm going to give you $50,000. I'm going to be $100,000 to help you with a start up. I'm going to be you, Angel. And where do I have to do for that moment? Then there is ah, venture capital. Angel investor usually gets a percentage off your business, and they have a vested interest. So they're really here to help you. But that's why they call an angel there, like hovering over you happily. Then we have the venture. Capital venture capital comes after angel investors. So after, um, venture capital. This is the part where we talked about the business way. You really have to know how the business is going to be making money because venture capital is interested in one and one thing only problem profits. They're not investing because they think you're cute. They investing because they think you can generate money for them. So venture capital and they want a portion of your business and venture capital. Now, here's your number, right. They venture capitalists usually hope that within three years that they can turn the business around and sell it at a multiple. Which is why the lender, the expertise and they're really after you to grow this for profits so that you can sell it and then they they cash out. Then they go off to the next business. So if you if you ever watched you know, some of these reality shows like Shark Tank's, you know, giving up equity is always a questionable is always a tough a tough thing to do. You know, if you have a great partner, it can propel your business with their expertise to the next level. It's a great idea, but a lot of businesses you just be, you know, just be really mindful about that crowdfunding like Kickstarter and, um, go fund me. I've seen a lot of this, especially for artists, and I love I love these websites. I like thanks, because banks very straightforward. You need to have your act together like what we're doing here. You take this to the bank and the bank says looks good. Hopefully and then you have proven to them how much money you need, and then they give you the money, usually give you a little bit less. And then and then you go off and you're doing everything. But the bank wants to see that and how you're going to pay it back. So a big part of the off the growth process has to be because even though you're getting money to start your business now, you need to add more money to that, which is the money you have to pay back because you have to start paying back money even if you don't make any money it. So you have to prove to them on how in all of that you're starting to kick on the machine so you can pay for your start up expenses, pay for the people that put it through, and then somehow figure out a way on how to pay that loan back on time. I'm proud to say that my s B a loan that I got I paid back eight years earlier, got a 10 year loan and I paid it back aid. Yes, early. That was a great day. That was a great day. And bootstrapping means, um, using our own money. Let me talk about family and friends first. If you can't avoid it because this has family feud written all over. It goes for some reason family and friends never can remember the exact amount. And if you don't have if and if you do it, please do yourself a favor. Treated like a bank loan. Say, do a written piece of paper. This is how much money I'm going to get. This is how I'm gonna pay you back. This is the percentage or no Ah, no percentage loan that I'm gonna pay you for lending me the money so that it's all in writing. And if you do that, police treat your family and friends like you would treat the bank. But usually what happens is that family and friends get paid back last because the bank is, you know, meaner than the family. And friends in the bank can shut you down, whereas, you know family fans can not. So it just be prepared. If you ask family and friends, it can get a little bit messy like that. It's not many happy stores with family and friends money that I know bootstrapping is in my world. The ideal case is that you use your own money and you activate that, but that's often not possible, especially when you produce something. But when you have a patent and you need to manufacturer devices that help people's lives, you know you need you need $250,000 at a time to manufacture large chunks off product, right? So that kind of money sometimes very rarely you can make happen on your own unless you have rich friends or, you know, somehow other access to money.
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