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Feb 05, 2018 at 07:00 AM

Small Business Financing - Do's and Don'ts From 12 Small Business Finance Gurus

By Alexandra Trujillo
Small Business Financing - Do's and Don'ts From 12 Small Business Finance Gurus

Financing correctly is not just about money. There are many other factors to consider when trying to figure what you should and should not do. Sometimes knowing that an investor cares about your mission should be something that you consider. Overall, this article provides some good tips to be aware of when financing your small business.

By Jared Hecht

Being a small business owner doesn't automatically make you an expert in finance or small business accounting. In reality, most rookie entrepreneurs have to learn the basics of funding, bookkeeping, and what really matters to lenders and investors as they go.

If the financial side of your small business has you lost, these experts offer practical finance do's and don'ts to get you back on track.

1. Focus on Meaning, Not Money

"We meet with entrepreneurs all the time and they tell us what they think we want to hear, that they want to make money. When we hear that, it's so depressing. It took me 20 years to come to this understanding, but the companies that are successful are the ones who create meaning. Create the next curve; don't improve on sameness."

-Guy Kawasaki, Chief Evangelist at Canva

2. Remember That Your Team Defines Your Business

"Investors put their money in people, not a business. The better team you have, the more money you will be able to attract. Get people on your team that have industry expertise and that have been there before. Investors want track records."

-Barry Moltz, author of Bounce! and How to Get Unstuck

3. Choose Investors That Care About Your Mission

"For us, fundraising has never been about capital-it's about people. [...] You can almost apply the same lens you do to fundraising as you do to hiring. So for us, when we hire someone it's about their values, their motivation, and their skill set. When we fundraise, it's the same idea. This person is now going to become a part of your community. They're going to be an ambassador for your business. They're going to represent you in an external context. [...] These folks didn't invest because of the desire to simply make a 10x, 50x, 100x return on their investment. They invested because they really cared about the mission."

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Posted in Small Business Financing.







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