Sell Your Product Before Selling Ownership Stakes
Delaying Funding can Help You Stay in Control
The purpose of a business—any business—is to generate shareholder wealth. A lot of businesses aim to raise capital during their various initial phases. It’s tempting to try and get funding in the beginning, while your ideas are still forming. Getting a lump sum of cash at the beginning could cost you: a big chunk of the company, board seats, and/or control. Instead, why not focus on steadily earning revenue while keeping the company your company?
Many entrepreneurs fall into the trap of raising capital because they’ve been told this is where to start. So how can you have a successful company without resorting to venture capital? Entrepreneurs should follow these few steps to maintain autonomous control of their companies.
Step 1: Throw Yourself into Sales
Step 2: Partner Up and Pay Attention
Step 3: Practicing Your Pitch Makes Perfect
Step 4: Replicate Your Sales Successes
Capital is Necessary, but Control of Your Business is More Valuable