Beg, borrow and steal

Alright, don’t steal, but the principle is important to most startups.

Let’s say it again – most stories we hear about startups are for the likes of eBay, Facebook, Google, etc.  They were in the right place at the right time and found VC money willing to back them.

Now let’s talk about the other 99.99% of startups – that means you.

You put together a business plan showing a wonderful story of how you are going to get the product right, market it to customers and then revenues will grow year on year forever.

You then go and put in what you can each afford. You are feeling anticipation and trepidation at the same time.

Fast forward 6 months.

You are late on your product.

Customers can’t buy what isn’t finished yet.

The market is flat.

You worry that the standards for your product are too high, and that it will take forever to complete. Your technical people disagree.

You are running out of money.

This is the point that many people give up. Your business partners may decline to spend any more, and become detached, if not pull out altogether with demands that the rest of you to pay them out.

Now you will need to get street smarts in a hurry.

• Can you pre-sell products or subscriptions for services?
• Can you get supplies on consignment?
• Can you find other markets?
• Can you rent in cheaper premises?
• Can you offer compensation to employees and suppliers through equity?
• Can you get government grants?
• Can you find an angel investor?
• Can you find other sources of income?

Many days will be a battle, but this is where the real entrepreneur comes out.