DISPELLING THE FUNDING MYTH. CAFFEINATED ADVICE TO ENTREPRENEURS SEEKING FUNDING
Many a entrepreneurs think that getting funding will solve all their problems.
So let me dispel some funding myths:
1. Funding will not make you rich. Funders don’t like to pay for high salaries.
2. Money will not solve your challenges. Hiring someone does not make your problems go away. Often the best solutions come out of resource constrained environments.
3. Funding will certainly allow you to afford new resources but keep in mind that you’ll be under even greater pressure to create ROI ASAP. Hence make sure you already have commercial traction and that the funding is used predominantly to increase the traction you created
4. Remember that you’ll pay a very high price in exchange for funding: your freedom and flexibility. Be prepared for life in a golden cage.
My advice: there’s no doubt that one day you’ll need funding but try and push that day down the line as far as possible and focus on making money. As your portfolio of clients grows so will your business model’s maturity as well as make your ability to raise funding (or even better, financing) easier.