I just finished a post and an article – Raising capital in a down economy – on Switch (formerly Women 2.0). It builds on an earlier post Tough Time Raising Capital? VC Investors Say it’s Going to Get Worse – Here’s What to Do! Click to read the entire article and then scroll below to get some suggestions about how to handle some tough times.
Here are some suggestions on how to strengthen your position. (See further details for each suggestion below the list).
- Start Conserving Cash! You want your runway to be as long as possible. I suggest 1 year as a minimum and 2 years as ideal – that way, if we have a soft landing or another “Great Recession”, lack of cash won’t kill your business.
- Grab Our FREE VentureWrench Crisis Capital Guide – 5 Changes In Startup Funding in a Down Economy!
- Get Super Strategic about Investors and Potential Investors including Angels and VC’s (Consider InvestorFind to help!)
- Get a Coach to help you Get the Inside Info you need to Succeed
- Consider our Newest online Course – Raising Capital in a Down Economy
- If you are planning to raise funding for your startup, Click to Get our FREE VentureWrench Guide to Investor Capital 50 pages of insider insights to help you succeed!!
1. How do you start conserving cash?
- Are you skinnying down your costs in a big way? See my concrete suggestions on ways to work down costs without destroying the business (hint you may be able to avoid layoffs if you follow my suggestion instead….)
- If you have most of a round raised, close now before terms start to get really bad (and they are going to get bad!)
- Get to market right now and start selling, selling, selling (and closing)!
- If you have some customers “on the hook”, get them closed with whatever discounts, terms or deals you can come up with. Clearly right now, Cash is King!
- Finally, If you can’t raise any capital, can you take your company into some form of hibernation, caching the technology and IP or nursing along existing customers?
2. Click to Grab Our Free VentureWrench Crisis Capital Guide – 5 Changes In Startup Funding in a Down Economy!
3. Get Super Strategic about Investors and Potential Investors (Consider InvestorFind™ to help!)
Remember our strategy – Design the Perfect Investor™, which is even more important in a down market. InvestorFind can help you find those perfect investors fast!
4. Get a Coach to help you Get the Inside Info you need to Succeed
Right now you need insider insights more than ever! Get help from an entrepreneur who has also been on the funding side – that way you get an ally with the inside scoop.
5. Consider our Newest online Course – Raising Capital in a Down Economy
We’ve captured all that experience in a new course – taking the best of “Designing the Perfect Investor™” with the insights about what happens during a downturn – a downturn in startup capital that may last for 2-3 years!
6. If you are planning to raise funding for your startup, Click to Get our FREE VentureWrench Guide to Investor Capital 50 pages of insider insights to help you succeed!!
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If you are planning to raise funding for your startup,
Click to Get our FREE VentureWrench Guide to Investor Capital
50 pages of insider insights to help you succeed!!
