Three Questions to Ask Before Seeking Business Financing
So many times small business (and medium-sized business) owners say, "I need money, I wonder if I can get a bank loan?" Or if they are technology company owners they say, "I need money. I wonder if I can get angel investors or venture capital?" I say to this, HOLD UP! Do not jump the proverbial gun. There are some other questions you need to ask otherwise you will immediately limit your focus to one or two particular sources of small business financing. Put another way, if you hone in on the "how" too quickly, you shut down your imagination and limit your options. To broaden their perspective, business owners and executive management must focus on the "why" and the "what". These are the questions you need to ask FIRST: • How much money do I need? This is a crucial question. Yet there are so many business owners who cannot answer this question. The amount you need is a big driver of the best source of the financing. The true amount ...