RAISING CAPITAL Raising capital is one of the hardest things you need to do. If you are lucky, you have the money to fund your start-up. However, if you don’t, it is time to think about how to raise capital. Before you approach people, banks, or the SBA for capital, you need to think through the “use of capital”. In simple terms, if you had the money, how would you use it and why. I suggest that you build a Use of Capital Schedule in your business plan with milestones and explanations. More than once, you are going to say, I never imagined. As you start the process of raising capital, you will get questions that you never imagined. When you know the answer, answer in a genuine and straightforward manner. When you don’t know, simply ask for time to research and consider the question with a promise to get back to the investor. Remember, raising capital is lled with time friction. Don’t get discouraged; do the hard work.
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